Infosys: If you keep an eye on the stock market, then there is good news for you. India’s second largest IT company Infosys has announced a share buyback of Rs 18,000 crore. This is the company’s biggest buyback program so far. After this announcement, Infosys shares saw a rise of more than 2% on September 12 and its price reached Rs 1,539.90 per share in the early hours.
What are the details of the buyback?
The company said in the exchange filing that the buyback will not be based on more than 25% of the capital and it will be 2.41% of the total stake of the company. The buyback price has been fixed at Rs 1,800 per share, which is about 19% more than the previous day’s closing price.
This is the first time since 2022 that Infosys has announced a buyback. Then the company had approved a share buyback of Rs 9,300 crore. The record date of the new program is yet to be announced.
Strong position of the company
The Bengaluru-based IT giant had cash of over Rs 42,000 crore and free cash flow of over Rs 20,000 crore available in FY25. The company has always aimed to return 85% of free cash flow to shareholders through dividends and buybacks in five years as part of its capital allocation policy.
Brokerage house’s stance
Market experts have also welcomed the move. CLSA has given an ‘Outperform’ rating on the stock and has a target price of Rs 1,861. Nomura has given a target of Rs 1,880 with a ‘Buy’ call, while Morgan Stanley has a target of Rs 1,700 with an ‘Equal-weight’ rating.
Experts believe that this buyback will not only benefit the shareholders but will also help maintain the stability of the stock in the coming months.
Results and future expectations
The company recently reported a net profit of Rs 6,921 crore in the first quarter of FY26, up 8.7% year-on-year. At the same time, revenue grew by 7.5% to Rs 42,279 crore. The company expects revenue growth of 1–3% for the full year and margin guidance has been maintained at 20–22%.
This buyback of Infosys is a sign of great confidence for investors. The company’s strong cash position, regular dividend and share buyback policy can attract investors for a long time.
Disclaimer: This article is for information sharing purposes only. The views and analysis given here are not investment advice. Consult a certified financial advisor before investing.
Also Read:
Gold and Silver Prices Drop: MCX Gold at ₹1,07,219, Silver at ₹1,24,058 Amid Dollar Strength
Heathrow Terminal 4 Shut Down for Hours Amid Passenger Panic
Asia Cup 2025: India Destroys UAE in Record-Breaking 9-Wicket Win
