Infosys announces largest ever buyback at 19% premium to share price
Infosys’ share price fell 1.51% to ₹1,509.50 apiece on the BSE before the buyback was announced on 11 September. A record date will be announced later.
Infosys Ltd. has announced its biggest ever buyback at 19% premium to its closing share price on Thursday (11 September 2025).
The board of directors of India’s second largest IT services firm has approved a proposal to repurchase 10 crore fully paid-up equity shares of face value ₹5 each at ₹1,800 apiece, according to an exchange filing. Meaning, the buyback is equivalent to 2.41% stake in the company and worth ₹18,000 crore.
The buyback size does not exceed 25% of the aggregate paid-up capital and free reserves, based on the latest financials as on 30 June 2025, the company stated.
As on 30 June 2025, Infosys had a free cash flow of ₹7,533 crore—a 17.7% year-on-year decline—but still 108.8% of net profit, according to quarterly results data. In US dollar terms, free cash flow was $884 million, or 109% of net profit. Infosys held consolidated cash and investments of ₹45,204 crore as on 30 June 2025.
A record date for the Infosys buyback will be announced later.
A share buyback typically indicates that the management views the stock as undervalued and that it has sufficient cash reserves. Infosys has a policy to return to a substantial portion of its free cash flow to shareholders.
To be sure, this is only the fourth share buyback in the history of the company that was co-founded by N.R. Narayana Murthy in 1981. Infosys listed in February 1993.
- 2017: The first-ever buyback in Infosys' three-decade history. The company repurchased 11.30 crore shares at ₹1,150 apiece, totalling ₹13,000 crore.
- 2019: Infosys bought back from the open market 11.05 crore shares at an average price of ₹747.38 apiece, totalling ₹8,260 crore.
- 2021: In another open market transaction, Infosys picked up shares worth ₹9,200 crore to ₹9,300 crore at ₹1,750-1,850 apiece.
On Thursday, Infosys’ share price fell 1.51% to ₹1,509.50 apiece on the BSE, even as the benchmark Sensex ended the day 0.15% higher at 81,548.73 points. The buyback announcement came after market hours.
