Infosys Shares In Focus: Rs 18,000 Crore Buyback Opens Thursday — Check Key Dates, Entitlement Ratios
Infosys has set the buyback ratio at 2:11 for retail shareholders, meaning two shares will be bought back for every 11 held.
Infosys Ltd. shares are in focus 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.
Settlement moves quickly thereafter. Dec. 3 will see three key actions — settlement of bids on the stock exchange, return of unaccepted shares to brokers or eligible shareholders, and payment of consideration to those whose shares have been accepted. The buyback process formally concludes with the extinguishment of equity shares on Dec. 12, 2025.
The entitlement factor for investors tendering their shares works out to 18.1% for retail or small shareholders and 2.4% for the general category. While the company had bought back 4.9% of its equity in 2017, it will repurchase 2.4% this time. However, the Rs 18,000 crore size makes this Infosys’ largest-ever buyback, nearly double the size of its previous two programmes.
Infosys Share Price Today
The stock settled 1.38% lower at Rs 1,486.80 apiece on the NSE on Tuesday, compared to a 0.4% decline in the benchmark Nifty 50. The shares earlier during the day fell as much as 1.6% to Rs 1,483.20 per share.
Infosys shares have fallen 18.54% in the last 12 months and are down 20.94% year-to-date.
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%.
