Our Bureau
Mumbai
As per the notification given by Infosys Ltd. to the exchanges, the company has been given exemptive relief from the United States Securities and Exchange Commission for its Rs 18,000 crore buyback. The company had announced its first share buyback since their last one three years back in October 2022.
After receiving approval from the US Securities and Exchange Commission, the buyback is now seeking approval from the existing shareholders through a special resolution and postal ballot. This will be the fifth time the IT giant is repurchasing its shares and the decision this time came amidst the macroeconomic volatility weighing on stock price.
This time the price for the share buyback has been set at Rs 1,800 per share which shows a premium of 19.28% from Infosys’ last closing price on the Bombay Stock Exchange. As per the previous data, the whole process of buying back the shares will take around three to four months till its fully completed.
According to the reports, the IT giant spends around 30% of its total cash on an average, on repurchasing their shares. The first-quarter cash and cash equivalents of the company are set at Rs 45,200 crore, while the company’s net worth sits at Rs 95,350 crore. Currently, the stock of Infosys is owned by over 25.79 lakh people.
The Rs 18,000 crore buyback that Infosys is planning for is a part of the capital return policy that the company announced a year ago in 2024 of returning 85% free cash flow over five years through dividends and repurchases.
