Infosys Board Approves Record ₹18,000 Crore Share Buyback

IT services major Infosys has announced its biggest-ever share buyback worth up to ₹18,000 crore, marking its first repurchase program in three years. The move reflects the company’s strategy to return surplus cash to investors and follows a broader trend among Indian IT firms such as TCS, Wipro, and HCLTech.

Details of Infosys Share Buyback 2025

According to the company’s exchange filing on Thursday, the board approved the repurchase of up to 100 million fully paid-up equity shares with a face value of ₹5 each. This accounts for 2.41% of Infosys’s total paid-up share capital.

The buyback will be conducted through the tender offer route, allowing eligible shareholders to sell shares back to the company at a fixed price.

Buyback Price and Market Performance

The buyback price has been set at ₹1,800 per share, which represents a significant premium over Infosys’s recent trading levels.

• On Thursday, Infosys stock closed at ₹1,509.50 per share, down 1.51% from the previous session.

• The buyback price offers shareholders an opportunity to cash out at nearly a 19% premium.

The record date, which will determine shareholder eligibility, is yet to be announced. Shareholder approval will be sought through a special resolution by postal ballot.

Financial Compliance and Structure

Infosys clarified that the buyback size excludes associated expenses such as brokerage, taxes, and regulatory fees. The company further stated that the program complies with regulatory limits:

• The buyback size does not exceed 25% of the paid-up capital and free reserves, based on the company’s audited standalone and consolidated financial statements as of June 30, 2025.

• Holders of American Depositary Shares (ADS) can also participate in the buyback, provided they convert their holdings into equity shares before the record date.

Buybacks as a Strategy Among Indian IT Firms

Infosys’s decision comes at a time when Indian IT majors increasingly use share buybacks to distribute excess cash to investors.

• Wipro: Announced a ₹12,000-crore buyback in 2023 at ₹445 per share.

• TCS: Completed a ₹17,000-crore buyback in December 2023 at ₹4,150 per share.

• HCLTech: Has also undertaken multiple buybacks in recent years.

Infosys’s ₹18,000-crore buyback is comparable to TCS’s 2022 exercise, which was also valued at ₹18,000 crore. This highlights the rising scale of buybacks in the Indian IT sector.

Analysts’ Reactions and Market Implications

Market experts believe Infosys’s move could influence competitors. Brokerage CLSA suggested that TCS may opt for a tender-offer style buyback of around ₹20,000 crore instead of declaring a special dividend.

Analysts point out that:

• TCS’s past buybacks have supported its stock performance.

• With IT valuations considered attractive at current levels, the timing of Infosys’s buyback could prove favorable for shareholders.

Overall, the repurchase program is seen as a shareholder-friendly move that not only enhances investor confidence but also underscores Infosys’s strong cash reserves and balance sheet stability.

Significance of the Buyback

The announcement reinforces the growing importance of buybacks in India’s IT sector. They serve multiple purposes:

• Returning surplus cash to investors.

• Enhancing shareholder value by reducing the outstanding share count.

• Providing price stability in volatile market conditions.

For Infosys, the move signals its commitment to rewarding shareholders while maintaining strategic flexibility for future investments.

Conclusion

The Infosys ₹18,000-crore buyback, its largest to date, marks a milestone for the Bengaluru-based IT giant. By offering a substantial premium to shareholders and aligning with industry trends, Infosys has reaffirmed its strategy of returning value to investors. With rival firms like TCS and Wipro also actively pursuing buybacks, this move highlights the evolving financial strategies of Indian IT companies in 2025.