Infosys, one of India’s leading IT companies, has approved a share buyback of Rs 18,000 crore at Rs 1,800 per share through the tender offer route, repurchasing nearly 2.41% of its outstanding equity. This marks the company’s fifth buyback since August 2017 and the largest so far, with plans to purchase 10 crore shares. The buyback price represents a 19.25% premium over Thursday’s closing price of Rs 1,509.50.
Following reports of the proposed buyback, Infosys shares slipped 1.51% on Thursday. Historically, the company’s stock has underperformed immediately after such announcements but recovered within three to six months, gaining 5–10%.
“The buyback size does not exceed 25% of the aggregate of the paid-up capital and free reserves, based on the latest audited standalone and consolidated financial statements as on June 30, 2025,” Infosys said in a statement.
Infosys shares have declined nearly 22% between September 12, 2024, and September 11, 2025. The last buyback, in 2022, was through the open market route for Rs 9,300 crore at Rs 1,850 per share. In 2021, the company repurchased shares worth Rs 9,200 crore at Rs 1,750 apiece.
Ambareesh Baliga, independent market analyst, said, “This is the fifth and biggest buyback by Infosys, beating street estimates. The 19% premium is attractive given the stock’s 24% decline this year. The company has nearly Rs 24,500 crore in cash, so deploying around 75% of it shows Infosys is focusing on a steady-state business with no major fresh investments.”
Deven Choksey, MD of DRChoksey FinServ, added that the primary motive was to return cash to shareholders. “Infosys had around Rs 25,000 crore in cash as of June 2025 and total cash equivalents of about Rs 45,000 crore. Based on Q1 FY26 performance, the company is expected to generate Rs 28,000 crore in cash for the full year. A 3% equity reduction through buyback at a 20% premium could increase EPS by 3.1%, translating into a valuation gain of about ₹18,800 crore. The arbitrage between buyback and cash yield explains the rationale.”
Earlier in August, Infosys had announced bonuses of up to 80% for most employees after a stronger-than-expected Q1 performance. The buyback comes at a time when the IT industry is grappling with demand slowdown in the US and Europe.
Why companies go for buybacks
Buybacks allow companies to use surplus cash to return value to shareholders, support share prices, and signal financial strength. For IT majors, with mature business models and limited new investment opportunities, buybacks are a preferred capital allocation tool. They are also used to reassure investors when stock performance is weak.
Other recent buybacks
In 2025, Bajaj Consumer Care repurchased 64 lakh shares at ₹290 apiece and Tracxn Technologies 11 lakh shares at ₹75. In 2024, Bajaj Auto bought back 40 lakh shares at ₹10,000 each, while Matrimony.com, TTK Prestige, eClerx Services, Aurobindo Pharma, and Zydus Lifesciences were among others to launch buybacks. Big names like Emami, Natco Pharma, TCS, L&T, and Piramal Enterprises also undertook buybacks between 2021 and 2023.