Infosys last carried out a buyback in 2022, when it spent ₹9,300 crore to buyback shares from the open market. In fact, the last three buybacks carried out by Infosys were all through the open market and not via the tender offer route.
An open market buyback is when the company buys its own shares from the market at the prevailing price, unlike tender offer route, where shares are repurchased at a fixed premium price.
Brokerage firm Morgan Stanley wrote in its note that it finds the buyback announcement to be interesting, particularly in the context of heightened macro uncertainty.It sees the room for the potential cumulative buyback size to be between ₹10,000 crore to ₹14,000 crore. Historically, the buyback price has been at a premium of 18% to 25% to the current market price, according to Morgan Stanley.
Indian IT stocks have been under selling pressure over the last two weeks. The Nifty IT index has gained only once in the last nine trading sessions. The index has lost nearly 2,000 points during this period.
While there were unconfirmed reports over potential tariffs on Indian IT services by the Trump administration, there has been no official word on the same.
Earlier, Endava, a global IT services company said that the AI pipeline is growing but conversions are slower, and that the clients are holding back their large spends into AI. The stock had declined 30% after this commentary.
The Nifty IT index fell on Monday for the fifth day in a row, with most of the stocks ending with losses.
First Published: Sept 9, 2025 8:41 AM IS
