Infosys on September 11 announced that its board has approved a share buyback proposal worth Rs 18,000 crore, its largest ever. The buyback price has been set at Rs 1,800 per share. This is the first buyback of shares announced by Infosys since 2022, when the company had agreed to a buyback proposal of Rs 9,300 crore.
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In an exchange filing released in the post market hours of September 11, Infosys announced that the share buyback program does not exceed 25 percent of the aggregate paid-up capital and accounts for 2.41 percent of the company. The buyback price has been set at Rs 1,800 per share. The record date for the latest buyback programme is yet to be announced. The company has said that the buyback will be done through the tender offer route.
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Buyback refers to a corporate action where a company repurchases its own shares from the existing shareholders. This was earlier done through open market or tender offer route. Under the open market mechanism, the company buys back its shares actively from sellers on stock exchanges. Notably, market regulator SEBI has now completely phased out this method. As part of the tender offer route, the only way which is now available, the shareholders submit their tender, which is sell their shares within a stipulated time.
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Infosys' buyback price of Rs 1,800 apiece marks a premium of more than 19 percent from the stock's previous closing price of Rs 1,509.70 apiece. The stock gained more than 2 percent intraday after the announcement.
In an exchange filing released on September 12, Infosys said that it will receive some exemptive relief from the US SEC as a result of the share buyback due to "conflicting regulatory requirements between Indian and U.S. laws for tender offer buybacks".
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The Bengaluru-based IT major had cash and cash equivalents of over Rs 42,000 crore and free cash flow of over Rs 20,000 crore in FY25, giving it ample headroom for shareholder payouts. The buyback will be funded from its free reserves, in line with its capital allocation policy of returning 85 percent of free cash flow over five years through dividends and repurchases. (Image: Infosys CEO Salil Parekh)
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Infosys shares gained more than 6 percent in the past five days, and over 8 percent in the past one month. The stock has fallen nearly 3 percent in the past six months, and is down more than 18 percent in 2025 so far.
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CLSA kept an 'Outperform' call on the stock, with a target price of Rs 1,861 apiece. This implies an upside potential of more than 23 percent from the stock's previous closing price. The buyback is expected to support stock price during the weak second half of FY26, it said.
Nomura kept a 'Buy' call on the stock, with a target price of Rs 1,880 per share. This implies an upside potential of over 24 percent from the stock's previous closing price. The international brokerage expects the firm's CC revenue to grow 3.8 percent on-year in FY26.
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Morgan Stanley kept an 'Equal-weight' call on the stock, with a target price of Rs 1,700 per share. This implies an upside potential of nearly 13 percent from the stock's previous closing price. The international brokerage said that the firm's buyback size was higher than the Rs 10,000–14,000 crore size initially estimated. Amid macro uncertainty around Trump tariffs, Morgan Stanley sees the buyback as a vote of confidence in stability of FY26 guidance.
