Infosys Sees Fivefold Response to ₹18,000 Crore Share Buyback Offer

Infosys Ltd  has witnessed an overwhelming response to its largest-ever share buyback program, with tendering exceeding 500 million shares—roughly five times its offer size of 100 million shares under the ₹18,000 crore buyback scheme. The repurchase, which opened on November 20 and closes on November 26, 2025, is being conducted through the tender offer route, with shares priced at a premium of ₹1,800 each, compared to last closing price of around ₹1,530.

The buyback represents 2.41% of Infosys’ paid-up equity and aims to optimize the capital structure by returning surplus funds to shareholders while supporting key financial metrics such as earnings per share (EPS). Small shareholders are entitled to tender 2 shares for every 11 held, while other shareholders have an entitlement of 17 shares for every 706 held. However, acceptance ratios may differ due to varied investor decisions influenced in part by tax considerations.

Infosys’ promoters, including Narayana Murthy and chairman Nandan Nilekani, have confirmed they will not participate in the buyback, leaving the process open to public investors. Notably, the buyback amount received by shareholders will be treated as a dividend for tax purposes and taxed according to individual slab rates. Meanwhile, the cost of shares tendered will be recognized as a capital loss, which investors can offset against capital gains in the current or future fiscal years, providing some tax efficiency for participating shareholders.

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This buyback marks a continuation of Infosys’ disciplined capital allocation strategy, balancing rewarding shareholders directly and investing in long-term growth opportunities such as AI-driven digital transformation. The strong tendering response is seen as a vote of confidence from investors and a signal of healthy liquidity and market sentiment for the IT sector amid evolving industry dynamics.

This substantial buyback reinforces Infosys’ position as a leader in capital management among Indian IT giants, offering shareholders a premium exit opportunity while streamlining equity for future growth potential.

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