CHENNAI: Shares of Indian IT major Infosys rose by more than 2 percent in early trading on Friday, September 12, driven by strong investor response to the company’s announcement of its largest-ever share buyback program. The stock reached Rs 1,544.65 on the Bombay Stock Exchange (BSE), up from the previous day’s close of Rs 1,509.50.
Infosys announced a buyback worth Rs 18,000 crore (approximately $2.04 billion), which is the biggest in its history. The company plans to repurchase up to 10 crore (100 million) shares at a price of Rs 1,800 per share, which represents a 19% premium over the stock’s previous closing price. This move reflects Infosys’s strong cash position and its confidence in long-term business prospects.
The buyback will be carried out via the tender offer route and requires approval from shareholders through a special resolution by postal ballot. Once approved, the buyback is expected to reduce the number of outstanding shares and improve earnings per share (EPS), thereby benefiting shareholders.
The announcement exceeded market expectations, as analysts had earlier speculated that the buyback size would fall in the range of Rs 10,000–14,000 crore. Following the announcement, Infosys became one of the top gainers on the Nifty 50 index, with strong participation from both retail and institutional investors.
Analysts responded positively, viewing the buyback as a strong signal of financial stability and a shareholder-friendly move. Brokerage firms such as CLSA and Nomura raised their target price estimates to around Rs 1,880, citing the buyback as a value-accretive decision. Morgan Stanley maintained a neutral stance but acknowledged the positive market sentiment.
Overall, the record buyback demonstrates Infosys’s commitment to returning value to shareholders while reinforcing its financial strength. The move is expected to support the stock’s performance in the near term and strengthen investor confidence amid a volatile market environment.