Infosys announces Rs 9200 crore buyback commencement date – Check details here

The information and technology major Infosys’ buyback plan for Rs 9,200 crore is scheduled to commence from June 25, which was approved during the quarter four results announcement. The IT heavyweight proposed to buy back shares at a maximum price of Rs 1,750 apiece.

Infosys on Wednesday ended flat but negative by half a per cent to Rs 1502.85 per share on the BSE, and since the announcement of the buyback, the stock has soared by 12 per cent.

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The company’s board had given in-principal approval for the buyback of shares on April 14, 2021, while the shareholders' nod was received on June 19, 2021, during 40th annual general meeting.

In its filing to exchanges, the company issued an announcement on June 23 in various newspapers for the buyback of its equity shares from the open market through the stock exchange route.

Kotak Mahindra Capital Company Ltd was appointed as the manager of the buyback, it added.

With the buyback shares starting from Friday, the offer to remain open till December 24, 2021, as the last date for the buyback or six months from the date of the opening of the buyback (whichever is earlier). When the company completes the buyback by deploying the amount equivalent to the maximum buyback size.

The company’s advertisement showed, “Subject to the market price of the equity shares being equal to the maximum buyback price, the indicative maximum number of equity shares bought back would be 5,25,71,428 equity shares, comprising approximately 1.23 per cent of the paid-up equity share capital of the company as of March 31, 2021.”

Infosys will utilise at least 50 per cent of the amount earmarked as the maximum buyback size for the buyback i.e. Rs 4,600 crore. Based on the minimum buyback size and the maximum buyback price, the company will purchase an indicative minimum of 2,62,85,714 equity shares.