By Sheetal Kumari | March 3, 2025

MC Markets | September 15

Infosys Share Buyback: What it Means for Investors?

Infosys announced a Rs 18,000-crore share buyback, its biggest to date.

Largest Buyback Ever

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The board approved repurchase of 10 crore shares (2.41% of capital) at Rs 1,800 per share.

Buyback Details

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The buyback price reflects an 18% premium over Friday’s NSE closing.

Premium Offered

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Despite the move, Infosys shares slipped 1.6% on Monday, touching Rs 1,501.20 intraday.

Stock Reaction

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Analysts cite tax rules and profit-booking as key dampeners for investors.

Why the Weakness?

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Since Oct 2024, buyback proceeds are taxed as dividends in shareholders’ hands, reducing appeal.

Tax Hit for Investors

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Experts say low-tax or tax-exempt investors may still gain under the small shareholder quota.

Who Benefits More?

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The buyback cuts equity by 2.4%, modestly boosting EPS — positive for long-term holders.

Long-Term View

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This is the fifth buyback after similar moves in 2017, 2019, 2021, and FY23.

Infosys Buyback History

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Next: Top Stocks to Buy After GST Rate Cuts With Up to 30% Upside Potential
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