✅ Infosys Buyback – What It Means for Investors

Why Do Companies Buy Back Shares? A buyback is when a company repurchases its own shares from the market. Firms do this to: Boost EPS (Earnings per Share): Fewer shares in circulation means higher earnings per share. Return excess cash to shareholders: Alternative to dividends. Signal confidence: Management shows it believes the stock is undervalued. Improve valuation metrics: Can make stock look attractive compared to peers. Why Is Infosys Doing a Buyback Now? Infosys ltd.

has been sitting on large amounts of free cash with slowing global IT demand. Instead of letting cash idle, Infosys is opting for a buyback to: Reward shareholders during a challenging macro environment. Signal confidence in the company’s long-term growth story. Support the share price amid margin pressures and muted deal wins. How Much Free Cash Does Infosys Have? Infosys has a multi-billion-dollar cash pile, with over $4.5–5 billion in free cash available, which gives it the financial strength to conduct buybacks without straining operations or investments in digital/AI projects. Is a Buyback Taxed? Who Pays? Yes. In India, companies pay a 20% buyback tax (plus surcharge & cess). Shareholders receive the buyback proceeds tax-free in their hands. How Big Will the Infosys Buyback Be? The company usually does buybacks worth ₹8,000–₹9,000 crore. While the final size depends on board approvals, expectations are in that range. 📌 Learning Takeaway (20 words): Infosys’s buyback shows how cash-rich IT companies use capital returns to reward shareholders while signaling long-term business confidence.