Infosys’ board has approved a proposal to buyback equity shares worth up to ₹18,000 Crore. The buyback will be conducted via the tender offer route at a price of ₹1,800 per equity share. This represents up to 2.41% of the company’s total equity shares. The goal of this buyback is to return surplus funds to members efficiently and improve earnings per share.
Buyback Proposal Details
Infosys Limited (the “Company”) has announced a buyback of its equity shares, as approved by the Board of Directors. The key details are as follows:
- Buyback Size: Up to ₹18,000 Crore (Rupees Eighteen Thousand Crore only)
- Buyback Price: ₹1,800 (Rupees One Thousand Eight Hundred only) per Equity Share
- Route: Tender Offer
The buyback represents up to 2.41% of the total number of equity shares in the existing total paid-up equity share capital of the Company (on a standalone basis).
Purpose of the Buyback
The Company intends to return surplus funds to shareholders in an efficient manner, in line with its capital allocation policy. The buyback is also expected to improve return on equity and earnings per share.
Additional Information for ADS Holders
ADS holders intending to participate need to convert their ADSs to equity shares before the record date. The record date for determining eligible shareholders will be announced separately.
Financial Impact
The buyback will be funded from the Company’s free reserves and securities premium account. It is anticipated to impact the Company’s earnings per share and return on equity.
Proposed Timeline
The buyback is subject to shareholder approval and other regulatory clearances. Key dates, including the record date and offer period, will be announced in due course.
Source: BSE