Infosys Share Buyback 2022 News: Stock alert! Check expected price and history - What shareholders should know

Infosys Buyback 2022, Infosys Buyback Price 2022, Infosys Buyback Expected Price: Infosys, the country's second largest IT company, has announced that it would consider a share buyback programme at a meeting on Thursday, October 13 -- the day it will declare the second quarter results. If Infosys announces a share buyback programme, this would be the fourth such corporate action in the history of the company.

Infosys Buyback History

The first share buyback programme of Rs 13,000 crore was announced by the Bengaluru headquartered company in 2017 through the tender offer route. It was followed by Rs 8,260 crore issue in 2019 and Rs 9200 crore in 2021. The last two were executed through the open market route.

Infosys Buyback Expected Price

According to Zee Business research, Infosys could fix the buyback price at a premium of 18-21 per cent from the current market price. The buyback range could be between Rs 1740 and Rs 1800, according to Zee Business research analyst Arman Nahar.

As per the calculation, he said, the company could announce a buyback programme of Rs 8000-9000 crore. As of June end, Infosys’ cash and equivalents stood at Rs 22,000 crore, he said. The buyback is most likely to be executed through a tender route.

Infosys Buyback News

Market expert Hemang Jani said that Infosys buyback quantum is expected to be around Rs 9000 crore and the overall equity size could be around 1 per cent if done through an open market route. He said that the buyback programme is unlikely to impact the market much, adding that the announcement could have negative impact on earnings expectations.

Infosys Share Price NSE

Infosys stock on Tuesday emerged as the top loser in the Nifty IT pack as it cracked over 2.50 per cent to end at Rs 1425 apiece on the NSE. The stock has yielded a negative return of around 30 per cent in 2022 so far and is available at a discount of 25 per cent from its 52-week high of Rs 1953.90.

A share buyback programme is nothing but one of the corporate actions that signals that a company has enough cash on its books that can be utilised during emergencies and uncertainties.