Infosys Share Price Trades Higher As Co Gears Up For Largest-Ever Buyback

Shares of Infosys Ltd. rose over 1% in early trade on Wednesday, as the IT major gears up for its mega buyback, set to open on Nov. 20 and close on Nov. 26. The company, through an exchange filing on Tuesday, laid out a detailed timetable for what promises to be a crucial week for shareholders participating in the Rs 18,000 crore programme.

Infosys has set the buyback ratio at 2:11 for retail shareholders, meaning two shares will be bought back for every 11 held. For the general category, which includes institutional and non-institutional investors, the ratio stands at 17:706.

Nov. 26 is the last day for shareholders to submit completed tender forms and documents, including physical share certificates where applicable. Once submissions close, the Registrar will carry out verification, which is scheduled to be completed by Dec. 1. The following day, on Dec. 2, the Registrar will inform the stock exchange about the acceptance or non-acceptance of tendered shares.

The Rs 18,000 crore size makes this Infosys’ largest-ever buyback, nearly double the size of its previous two programmes.

The stock rose as high as 1.35% to Rs 1,506.50 apiece on the NSE on Wednesday, parings gains to trade 1.32% higher at Rs 1,506 apiece as of 9:25 a.m. This compares to unchanged movement in the Nifty 50 as of the same time.

Infosys shares have fallen 17.52% in the last 12 months and are down 19.95% year-to-date. The relative strength index of the stock stands at 46.87.

Out of 51 analysts tracking the company, 36 maintain a 'buy' rating, 13 recommend a 'hold' and two suggests 'sell', according to Bloomberg data. The average 12-month consensus price target of Rs 2,795.24 implies an upside of 14.8%.