Infosys Shares Rise Nearly 4% As Board Mulls Buyback

Infosys Ltd. shares rose during early trade on Tuesday after the company announced that its board will consider a proposal for buyback of equity shares on Sept. 11.

The company may spend Rs 13,560 crore in the buyback, according to analysis by NDTV Profit. The buyback has been priced at an average premium of 25%, according to data compiled by NDTV Profit. On an average, Infosys spends 30% cash on buyback. On average, Infosys buys back 14–15% of networth.

First quarter-cash and cash equivalents are at Rs 45,200 crore, while its net worth is at Rs 95,350 crore.

The Bengaluru-headquartered company had, in 2022, announced a share buyback of Rs 9,300 crore via an open market route for a maximum price of Rs 1,850 per equity share.

Infosys' share price advanced 3.9% to Rs 1,489 apiece. The benchmark NSE Nifty 50 was up 0.3%. The scrip was the top points contributor to the Nifty. The relative strength index was at 63.

The stock has fallen 24% both in a 12-month and on a year-to-date basis.

Out of the 50 analysts tracking Infosys, 35 have a 'buy' rating on the stock, 13 recommend a 'hold' and two suggest a 'sell', according to Bloomberg data. The average of the 12-month analyst price target of Rs 1,742x implies a potential upside of 21%.

Read Infosys Buyback: All You Need To Know.