“Beyond dividends: How Infosys’ latest buyback reshapes the shareholder reward playbook.”

Board Approval and Proposed Buyback Size Infosys’ board met on September 11, 2025 to consider a fresh share buyback, marking what could be its fifth repurchase since 2017. While the precise buyback quantum and maximum price per share will be disclosed post-approval, market chatter suggests a repurchase programme in the range of ₹13,500–₹14,000 crore, akin to the scale of its October 2022 buyback worth ₹9,300 crore and consistent with a strategy of allocating roughly 30 percent of cash reserves to repurchases. Immediate Market Reaction On the day the buyback proposal was announced, Infosys shares jumped nearly 4 percent, climbing to around ₹1,490 on the BSE—one of the few bright spots in an otherwise soft IT pack. Intraday gains peaked at 3.7 percent, underscoring investor enthusiasm for capital‐return measures amid broader sector headwinds and flat technology spending forecasts. Historical Buyback Track Record Since 2017, Infosys has executed four buybacks: - ₹18,000 crore in 2017 (tender offer) - ₹10,300 crore in 2019 (open market) - ₹9,300 crore in 2022 (open market) Strategic Rationale Behind the Buyback - Enhancing EPS and ROE: Reducing outstanding shares lifts earnings per share and return on equity, making the stock more attractive on valuation metrics. - Offsetting ESOP Dilution: With large employee stock option plans, repurchases neutralise share count dilution and support long-term incentive programmes. - Signalling Confidence: Deploying surplus cash rather than chasing big acquisitions signals management’s conviction in current business fundamentals and cash-flow visibility. - Tax Efficiency: Although buyback taxes now align with individual income slabs—removing earlier concessional rates—many retail investors still favour buybacks over dividends for timing control and potential premium exits. Benefits for Investors - Near-Term Premium - Improved Liquidity - Valuation Support - Reassurance Amid Sector Weakness