Infosys share price touches new record high, stock trading near buyback price of Rs 1750 apiece

The information and technology major — Infosys shares touched a new record high of Rs 1,755 per share up almost 1 per cent on the BSE intraday trade on Wednesday, amid the strong market. The counter has been trading near its maximum share buyback price of Rs 1,750 per share. 

The IT heavyweight on June 25, 2021, had announced a share buyback programme worth Rs 9200 crore at a maximum price of Rs 1750 per share. The share buyback will be closed on the expiry of six months from the commencement of this programme, the company had said in its statement. 

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The buyback may close before the six months if Infosys completes the same by deploying the amount equivalent to the maximum buyback size; or at such an earlier date as may be determined by the Board, the company had also mentioned while announcing the buyback. 

The Bengaluru-based IT firm 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. It will purchase an indicative minimum of 26.29 million equity shares based on the minimum buyback size and the maximum buyback price. 

The counter, in the last one month, has outperformed the market by gaining 13 per cent as compared to a 5.5 per cent rise during the same period in the S&P BSE Sensex. Infosys has raised its revenue growth guidance by 14-16 per cent for the financial year 2021-22 (FY22) amid a robust deal pipeline.  

In Q1FY22, large deal intake was healthy at $2.6 billion (30 per cent new), with 22 large deals signed during the quarter. The deal pipeline remains healthy with a good mix of new and renewal deals, offering good revenue visibility. 

The stock at around 11:43 am, is trading flat with a positive bias to Rs 1742.85 per share on the BSE, as compared to 0.35 per cent growth in the S&P BSE Sensex.