Infosys launched its largest-ever Rs 18,000 crore share buyback on November 20, offering a premium price of Rs 1,800 per share. Retail investors stand to benefit from promoter non-participation, better entitlement ratios, and a strong signal on future business prospects.
Key Highlights
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Buyback window open from November 20 to 26, 2025, at Rs 1,800 per share.
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Largest buyback by Infosys so far, targeting 10 crore shares or 2.41% of equity capital.
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Promoters and promoter groups have decided not to participate, improving public shareholders’ entitlement ratio.
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Buyback split into two categories: reserved for small shareholders and general category; small shareholders get 15% reservation or higher entitlement.
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Share buyback offers retail investors attractive exit options at a premium over current market prices.
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Tax implications vary; buyback proceeds treated as deemed dividends, impacting investors in higher tax brackets.
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Analysts view buyback as a confidence signal from promoters and a mechanism to enhance return on equity.
Detailed Report
Infosys , India’s IT giant, has opened its Rs 18,000-crore share buyback window on November 20, 2025. The offer allows existing shareholders to tender shares at Rs 1,800 each, reflecting a 19% premium over the share price at announcement. This buyback is the largest the company has undertaken, aiming to repurchase up to 10 crore equity shares, approximately 2.41% of the total paid-up capital.
A notable feature is the promoters’ decision to abstain from the buyback, which could lead to a higher acceptance ratio among retail investors, especially small shareholders holding shares worth up to Rs 2 lakh as of the record date, November 14. This increases the potential gains for retail investors by limiting competition from promoters during the tendering process.
While the buyback indicates strong promoter confidence in Infosys’ future, tax treatment of buyback proceeds as deemed dividends post-October 2024 means tax liabilities may affect net returns for high-tax bracket investors. Nevertheless, experts suggest retail shareholders could benefit significantly, with the buyback supporting the stock’s valuation and improving earnings per share by reducing share count.
Source: Moneycontrol, Reuters, Economic Times, Hindustan Times
