Promoters not tendering shares in the buyback generally signals confidence in the company’s prospects, and also the retail entitlement ratio could improve when the buyback process opens.
The entitlement ratio, record date, and other dates of the share buyback are yet to be announced by the company.Infosys has announced its largest ever share buyback, where it will be repurchasing 10 crore shares of the company, at a price of ₹1,800 per share, which in comparison to Wednesday’s closing price is a premium of 22%.
“Since the promoters and the promoter group of the company have declared their intention to not participate in the buyback, equity shares held by them have not been considered for the purpose of computing the entitlement ratio,” the company said.At the end of the September quarter, promoters of Infosys had a 14.3% stake in the company.
Infosys recently reported its results for the September quarter, which were better than estimates. However, the fact that the company only raised the lower end of its revenue growth guidance to 2% to 3% from 1% to 3% earlier, left many analysts disappointed, and who are now projecting a softer second half of the financial year for the company.
Also Watch | Bhavin Shah, Founder CIO & CEO, Sameeksha Capital
shares his view on the buyback news in an interview with CNBC-TV18.
Shares of Infosys are trading 4.6% higher on Thursday at ₹1,546.5. The stock is down 22% so far in 2025.
