Source: The Economic Times
Shares of Infosys rose on Friday, September 12, following the announcement of its largest share buyback programme of ₹18,000 crore. During trade on BSE, the stock rose 2.3% to ₹1,544.65 a day after the announcement.
Repurchase details:
“The Board of Directors of the Company at their meeting held on September 11, 2025, has considered and approved a proposal to buyback equity shares for an amount of Rs 18,000 Crore (Rupees Eighteen Thousand Crore only) (“Buyback Size”) for Rs 1,800/- (Rupees One Thousand Eight Hundred only) per Equity Share (“Buyback Price”), payable in cash, comprising of a purchase of 10,00,00,000 fully paid-up equity shares of the Company of face value of Rs 5/- each (“Equity Shares”) representing up to 2.41% of the total number of Equity Shares in the existing total paid-up Equity Share capital of the Company (on a standalone basis),” the company states in an exchange filing.
Market outlook
Analysts view the buyback to enhance key metrics, such as earnings per share (EPS) and after-tax return on equity (ROE). Buybacks are also believed to be more tax-effective than dividend payouts.
In prior years, Infosys’ buybacks have helped promote share price appreciation over the next 3-6 months, although certain market experts foresee fluctuations in the short term.
In the first half of 2025, Infosys shares have dropped nearly 20% due to weakened demand in the IT sector, slow client spending, and an uncertain global economy, with only 1-3% revenue growth expected this year.
Earlier buybacks
- 2017 – ₹13,000 crore at ₹1,150 each
- 2019 – ₹8260 crores
- 2021 – ₹9,200 crore at up to ₹1,750 each
- 2022 – ₹9,300 crore at ₹1,850 each
The latest programme is Infosys’ largest buyback yet.
Collaboration with HanesBrands
In addition to the buyback, Infosys announced the launch of a ten-year collaboration with HanesBrands Inc., a global apparel company.
Infosys will leverage its LEAP proprietary platform and AI-powered Infosys Topaz to enable HanesBrands’ digital transformation. The strategy includes taking advantage of AI and automation to streamline decision-making and simplify IT systems, and improve the value of their data.
With the ₹18,000 crore buyback, Infosys has made a powerful message to its investors and enhanced shareholder value while contending with industry challenges and tempered revenue guidance. With the earlier announcement of its long-term partnership with HanesBrands, Infosys is expressing its confidence in its growth strategy at the same time the company continues to rely on technology and AI to stay relevant in a difficult global environment.
