Infosys’ ₹18,000 Crore Buyback Opens on Nov 20 — Key Things Investors Should Know

Infosys is launching a large ₹18,000 crore share buyback via the tender-offer route, and the market is watching it closely. Key Highlights: Buyback Size: ₹18,000 crore Buyback Price: ₹1,800 per share Shares to Be Bought: Up to ~10 crore shares (around 2.4% of equity) Record Date: November 14 Buyback Window: November 20–26 Why This Matters: A premium buyback usually signals management confidence and strong cash reserves. Fewer outstanding shares can lift EPS and support valuations over time. Offers shareholders a chance to sell at a guaranteed premium. Important Things to Note: Only shareholders on the record date are eligible to tender. Acceptance ratio may be low if many investors tender shares. Following tax-rule changes, buyback proceeds may be treated as deemed dividend, affecting post-tax returns. Not participating means your ownership percentage in Infosys slightly increases as the share count reduces. Risks / Watch-outs: Acceptance uncertainty — retail acceptance ratios often vary widely. Market volatility around the buyback period can affect stock movements. Tax implications may reduce net gains if not evaluated properly. Learning Outcome: Buybacks can be value-accretive, but the real benefit depends on acceptance ratios, taxation, and your long-term view of the company. Investors should evaluate whether they want short-term liquidity or prefer holding Infosys for future compounding.