Shares of IT major Infosys Ltd rose 4% on October 23 after promoters and promoter group, including Nandan M Nilekani and Sudha Murty, have decided not to participate in the company's Rs 18,000 crore share buyback. The stock emerged as top Nifty gainer on October 3 and also helped propel Nifty IT index 2.4%.
The promoters collectively hold 13.05% of the company's equity as on the buyback announcement date.
"...the Promoter and Promoter Group of the Company have expressed their intention of not participating in the Buyback vide their letters dated September 14, 2025, September 16, 2025, September 17, 2025, September 18, 2025 and September 19, 2025.
"Pursuant to the proposed Buyback and depending on the response to the Buyback, the voting rights of the Promoters and Promoter Group in the Company, which constitutes 13.05% as on the date of the Public Announcement, may change," Infosys said.
At 10:05 am on October 23, Infosys shares were trading 4% higher at Rs 1,533 apiece, thus emerging as top Nifty gainer. The surge in the heavyweight stock helped propel the Nifty IT index 2.4% and was also top sectoral index on Nifty.
Infosys promoters include company co-founder N R Narayana Murthy's wife Sudha N Murty, daughter Akshata Murty, and son Rohan Murty. It also includes company co-founder Nandan Nilekani, his wife Rohini Nilekani, and children Nihar and Janhavi Nilekani. Other co-founders and their families are also promoters of the company.
"The promoters' decision to opt out of the buyback signals confidence in future prospects and improves the entitlement ratio for retail investors," Saurabh Jain, assistant vice president of retail equities at SMC Global told Reuters.
The Infosys board, in a meeting dated September 11, 2025, approved the company's largest-ever share buyback worth Rs 18,000 crore.
Infosys will buy 10 crore fully paid-up equity shares of a face value of Rs 5 each, representing up to 2.41% of the total paid-up equity share capital, at Rs 1,800 per share.
The buyback is being undertaken after taking into account the strategic and operational cash needs in the medium term and the need for returning surplus funds to the members in an efficient manner in line with Infosys' capital allocation policy, the filing said.
As per the stated Capital Allocation Policy, "Effective from financial year 2025, the Company expects to continue its policy of returning approximately 85% of the free cash flow cumulatively over a 5-year period through a combination of semi-annual dividends and/or share buyback/ special dividends, subject to applicable laws and requisite approvals, if any".
The company intends to steadily increase its annual dividend per share (excluding any special dividends), the filing said, adding that in line with the capital allocation policy, the buyback is anticipated to enhance shareholder value over the long term by reducing the equity base.
Infosys had announced its first share buyback programme in 2017. The company at that time had purchased 11.3 crore shares, or up to 4.92% of the paid-up equity share capital of the company, at Rs 1,150 per equity share, amounting to around Rs 13,000 crore.
The second buyback of the company was worth Rs 8,260 crore in 2019, while the third was worth Rs 9,200 crore. The Bengaluru-headquartered company had, in 2022, announced a share buyback of Rs 9,300 crore via an open market route for a maximum price of Rs 1,850 per equity share.
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