Infosys ₹18,000 Crore Share Buyback: What Investors Should Know

Key Details: Infosys announced a ₹18,000 crore share buyback — its largest ever. Buyback price: ₹1,800 per share, about 19% premium to the market price. Total shares: ~10 crore (2.41% of total equity). Record date: November 14, 2025. Promoters, including Nandan Nilekani and Sudha Murty, have opted out, signalling long-term confidence. Why Companies Do Buybacks: To return surplus cash to shareholders when internal growth opportunities are limited. To increase EPS and shareholder value by reducing outstanding shares. To signal confidence that the stock is undervalued. Investor Impact: Shareholders holding Infosys before the record date can tender shares at ₹1,800 and receive cash if accepted. Those who do not tender will see a slight increase in ownership percentage as total shares shrink. The buyback supports short-term share price stability and improves long-term value per share. Points to Consider: Tax: Proceeds from buybacks above ₹500 are taxable as dividend income in investors’ hands. Acceptance Ratio: Depends on how many shareholders tender — not all may get accepted. Business Fundamentals: A buyback boosts sentiment, but long-term returns still depend on revenue growth, IT demand, and margins. Investor Takeaway: Infosys’ buyback is a shareholder-friendly move, reflecting confidence in its cash flow and value. It benefits both short-term traders (premium exit) and long-term investors (EPS accretion). However, always weigh your tax situation, acceptance ratio, and long-term conviction before tendering.