Infosys Launches ₹18,000-Crore Buyback Today — Full Guide for Shareholders
Infosys buyback 2025: Indian IT major Infosys Ltd. is set to launch its largest-ever share buy-back programme, worth ₹18,000 crore, which opens on 20 November 2025 and will close on 26 November 2025.
Key terms of the Infosys buyback 2025
- The company will repurchase up to 10 crore fully paid-up equity shares of face value ₹5 each.
- The buy-back price is fixed at ₹1,800 per share.
- The repurchase represents about 2.41% of the company’s total paid-up equity share capital (on a standalone basis) if fully accepted.
- Record date (for eligibility) has been set at 14 November 2025.
- The route is via the tender-offer method: shareholders will be able to tender their shares through their brokers.
Why this move?
Infosys says the buy-back is in line with its capital-allocation policy — returning surplus cash to shareholders and reducing share capital to boost earnings-per-share (EPS) and return on equity (ROE).
inancial-market commentary notes that such a move signals that the company is confident about its future outlook, and the non-participation of the promoters may increase entitlement for public/retail shareholders.
What retail shareholders need to know
- The entitlement or ratio for the reserved category (small shareholders – defined as those holding shares worth ≤ ₹2 lakh as on record date) is 2 shares for every 11 shares held.
- For the general category, the entitlement is 17 shares for every 706 shares held.
- Since the promoters are not participating in the buy-back, the share pool for public/retail might see higher effective entitlement.
- Taxation: Because of regulatory changes, buy-back proceeds are treated as “deemed dividend” in the hands of shareholders, which may affect net benefit depending on one’s tax slab.
Market and investor implications
The fixed buy-back price of ₹1,800 per share is significantly above the then-prevailing market price, which creates a premium for eligible shareholders.
By reducing the number of shares outstanding (if fully accepted), the company could see improved EPS and metrics over time, which may be viewed favourably by the market. However, participation (acceptance ratio) is a key determinant of the ultimate impact.
Things to watch
- The acceptance ratio: if many shareholders tender, the actual buy-back may use up the full quota, but if participation is low the effect will be less.
- Impact on cash/book value: Cash reserves will decline by the ₹18,000 crore amount, so the company must still meet its growth/investment needs.
- Corporate signalling: A large buy-back can signal management’s confidence but also raise questions if capital could be deployed into growth rather than returned.
- Tax and net benefit for different categories of shareholders (retail vs institutional) may differ.
Summary
Infosys’ ₹18,000-crore buy-back programme is one of the largest recent capital-return moves in the Indian market. For eligible shareholders, especially retail investors, it presents an opportunity to tender shares at a substantial premium, subject to eligibility and entitlement. The reduction in share capital could improve per-share metrics for remaining shareholders. As always, shareholders should consider their tax situation, alternative uses of capital, and market conditions when deciding whether to participate.
