Infosys Ltd. announced on October 22 that its promoters, including Nandan Nilekani, Sudha Murty, and others, will not participate in the company’s ₹18,000 crore share buyback program.
Key Details of the Buyback
- Buyback Size: ₹18,000 crore
- Shares to be Repurchased: 10 crore shares
- Buyback Price: ₹1,800 per share (22% premium over the previous closing price)
- Promoter Stake: 14.3% as of September quarter-end
- Entitlement Ratio & Record Date: Yet to be announced
Implications of Promoter Non-Participation
- Signals confidence in the company’s prospects without needing to offload shares.
- Retail and other shareholders’ entitlement ratio could improve since promoter shares are excluded from the entitlement calculation.
Company Performance Context
- Infosys recently reported better-than-expected Q2 results for FY26.
- Revenue growth guidance was modestly revised to 2–3% from 1–3%, prompting some analysts to forecast a softer second half of the financial year.
Summary
Promoter abstention from the buyback reflects confidence in long-term value, while the premium offered in the buyback provides an attractive opportunity for other shareholders. The announcement is closely watched by retail investors for its potential impact on entitlement ratios and shareholding patterns.
Disclaimer:
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