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.

Updated on: Sep 12, 2025, 08:17:41 IST

By Tushar Deep Singh

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Infosys Ltd. has announced its biggest ever buyback at 19% premium to its closing share price on Thursday (11 September 2025).

This is Infosys' fourth share buyback in its history. (Reuters)

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.

ABOUT THE AUTHOR
Tushar Deep Singh
Tushar Deep Singh is a business journalist and digital editorial leader with 12 years of experience in financial journalism. Currently Assistant Editor at Hindustan Times, he is building the HT Business vertical and managing the newsletters for both Livemint and HT. When not in the newsroom, he can be found on a motorcycle. Throughout his career, Tushar has been instrumental in scaling digital publishing operations at some of India’s largest financial news websites. His six-year tenure at Mint—the first job—saw him plunge into online media to deliver record-breaking digital engagement for Livemint.com, including 7.2 million page views on 2017 UP Election Results day. He held fort at Livemint during a senior-level leadership transition later that year. That won him the HT Media Star Award (Bronze) in 2017 and a Certificate of Appreciation for Editorial Excellence in 2018. As the head of the digital desk at ETtech, he curated two daily, full-stack newsletters from an editorial as well as product perspective. At NDTV Profit, he transitioned from website editor to principal correspondent, reporting on the auto sector for the TV channel and website, thereby adding yet another layer to his editorial expertise. He is a post-graduate in journalism from Xavier Institute of Communications, Mumbai, and a graduate from St. Xavier's College, Ahmedabad.Read More

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