Infosys Ltd, one of India’s leading IT services companies, announced on September 11, 2025, that its board has approved the company’s largest-ever share buyback programme valued at ₹18,000 crore. The move underscores Infosys’ strong cash position and commitment to enhancing shareholder value.
Details of the Buyback Programme
- Buyback Size: ₹18,000 crore
- Number of Shares: 10 crore fully paid-up equity shares
- Face Value: ₹5 per share
- Buyback Price: ₹1,800 per share, representing a 19% premium over the closing price on BSE on September 11
- Equity Representation: Approximately 2.41% of total paid-up equity share capital
Infosys’ board has approved the buyback via a tender offer route, and shareholder approval will now be sought to execute the programme. At the end of Q1 FY26, Infosys reported a free cash flow of $884 million (≈ ₹7,805 crore), providing ample liquidity to fund the buyback without affecting operations.
Market Reaction
On the announcement day, Infosys shares ended at ₹1,509.50 on the BSE and ₹1,512.20 on the NSE, down slightly by 1.51% and 1.33% respectively. Market experts, however, believe that the announcement reflects strong confidence in the company’s long-term growth prospects and will likely create a positive sentiment across IT sector stocks.
Infosys Buyback History
Infosys has a consistent track record of returning surplus cash to shareholders through buybacks:
- 2017: ₹13,000 crore buyback at ₹1,150 per share (≈11.3 crore shares)
- 2019: ₹8,260 crore buyback
- 2021: Open market buyback of ₹9,200 crore, maximum price ₹1,750 per share
- 2022: Buyback worth ₹9,300 crore at ₹1,850 per share
This latest ₹18,000 crore programme represents a record-setting buyback, almost double its previous largest programme, demonstrating Infosys’ strong financial health and shareholder-friendly approach.
Strategic Implications
Analysts see multiple implications for the buyback:
- Shareholder Value Creation: Reduces the number of outstanding shares, potentially increasing earnings per share (EPS) and enhancing returns for existing investors.
- Market Confidence: Signals strong confidence by the management in Infosys’ long-term growth trajectory.
- Sectoral Influence: May create a positive ripple effect across IT stocks, as investors interpret the buyback as a signal of robust fundamentals in the sector.
Concurrent Developments: Infosys-HanesBrands Strategic Alliance
On the same day, Infosys announced a 10-year strategic partnership with HanesBrands Inc, a global apparel leader. Under this agreement, Infosys will deploy its Live Enterprise Automation Platform (LEAP), integrated with Infosys Topaz, to:
- Simplify IT systems and business applications
- Enhance operational agility and efficiency
- Unlock greater value from data using generative AI and AIOps technologies
The engagement positions Infosys as HanesBrands’ strategic collaborator for digital transformation, aligning with Infosys’ broader focus on AI-first solutions and automation across industries.
Analysts’ Perspective
Market analysts believe that Infosys’ record buyback and strategic AI partnership jointly indicate a well-rounded growth strategy:
- Returning surplus cash to shareholders without compromising capital for strategic projects
- Investing in long-term digital transformation initiatives that drive revenue growth and operational efficiency
- Strengthening global partnerships to enhance Infosys’ competitive positioning
According to experts, such corporate actions reinforce investor confidence, particularly in IT companies with strong cash flows and global clientele.
Outlook
Infosys’ ₹18,000 crore buyback represents a significant capital allocation aimed at enhancing shareholder wealth while maintaining the flexibility to invest in strategic growth initiatives like AI and digital transformation projects. With a strong free cash flow, continued focus on automation, and long-term strategic alliances, Infosys is positioned to sustain robust growth and market leadership in the global IT services sector.
Summary
- Buyback Size: ₹18,000 crore, largest in company history
- Number of Shares: 10 crore, representing 2.41% of equity
- Buyback Price: ₹1,800 per share (≈19% premium)
- Purpose: Enhance shareholder value and EPS
- Concurrent Move: 10-year AI partnership with HanesBrands using LEAP and Topaz
- Implications: Signals strong financial health, boosts market confidence, supports long-term digital growth initiatives
Disclaimer:
This article is intended solely for educational and informational purposes. The securities or companies mentioned are provided as examples and should not be considered as recommendations. Nothing contained herein constitutes personal financial advice or investment recommendations. Readers are advised to conduct their own research and consult a qualified financial advisor before making any investment decisions.
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