NEW DELHI: Infosys on Friday said it will buy back shares worth up to Rs 8,260 crore and offer shareholders a special dividend of Rs 4 per share as part of the company's Rs 13,000 crore-capital allocation policy.
The board has also approved the re-appointment of Kiran Mazumdar Shaw as the Lead Independent Director for the second term from April 1, 2019, to March 22, 2023.
Infosys, in a regulatory filing, said its Board has approved buyback of up to 10,32,50,000 equity shares, comprising approximately 2.36 per cent of the paid-up capital of the company as of December 31, 2018 for up to Rs 8,260 crore.
The shares, which will be purchased through the open market route via Indian stock exchanges, will be bought for a price not exceeding Rs 800 per share, it added.
Also, ADS (American depositary share) holders are permitted to convert their ADS into equity shares, and, subsequently opt to sell such equity shares on the Indian stock exchanges during the buyback period, the filing said.
Infosys had completed its maiden buyback of Rs 13,000 crore in December 2017, comprising 11.3-crore equity shares at a price of Rs 1,150 per share.
The buyback scheme -- a first in the company's over three decade history -- had seen participation from Sudha Gopalakrishnan, Rohan Murty and LIC among others.
Infosys, in its Friday filing, said the Board has constituted a buyback committee "comprising the Chief Operating Officer, the Chief Financial Officer, the Deputy Chief Financial Officer, the General Counsel and the Company Secretary of the company".
The buyback is subject to the approval of the members of the company by way of a special resolution through postal ballot and all other applicable statutory/regulatory approvals.
Infosys said it will announce the process, timelines and other statutory details of the buyback in due course.
Besides, it has fixed January 25, 2019 as record date and January 28 as the payment date for the special dividend of Rs 4 per share.
"After the execution of the above, along with the special dividend (including dividend distribution tax) of Rs 2,633 crore (USD 386 million) already paid in June 2018, the company would complete the distribution of Rs 13,000 crore, which was announced as part of its capital allocation policy in April 2018," it added.