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The record date for IT bellwether Infosys’ Rs 18,000-crore share buyback is later this week; Should you participate?
Infosys fixes record date for the share buyback.
Infosys Buyback: The record date for IT bellwether Infosys’ Rs 18,000-crore share buyback is later this week, giving investors one last chance to participate in the mega offer.
Infosys’ buyback record date is Friday, November 14, meaning only shareholders holding Infosys stock on or before this date will be eligible. Under the T+1 settlement system, investors must purchase Infosys shares by November 13.
Infosys Buyback Details
The buyback will be conducted via the tender offer route, with the company setting a buyback price of Rs 1,800 per share, representing an over 18% premium to the last closing price of Rs 1,514.60 on the BSE on Monday. Infosys plans to repurchase up to 10 crore equity shares, or 2.41% of its paid-up capital.
The buyback is open to all shareholders, with 15% reserved for small investors. Eligible shareholders can tender their shares during a five-day tendering window, starting within two working days after the Letter of Offer is dispatched.
This is Infosys’ largest buyback to date and the first after a three-year gap. The move comes as the company’s shares remain under pressure, down about 25% from their recent highs amid sector-wide headwinds. Infosys also confirmed that promoters and promoter group members, including Nandan Nilekani and Sudha Murthy, will not participate.
Should Retail Investors Participate?
While promoters are staying out of the buyback, analysts say the offer presents a short-term arbitrage opportunity — though recent tax changes complicate the picture.
Since October 2024, all buyback proceeds are treated as “deemed dividends” and taxed at the shareholder’s income slab rate (up to 30% plus surcharge and cess). Earlier, such proceeds were tax-exempt.
According to Santosh Meena, Head of Research at Swastika Investmart, for high-income investors, the post-tax return may be less attractive — or even result in a loss — compared to selling shares in the open market and paying the 10% Long-Term Capital Gains (LTCG) tax. “Tax efficiency must override the premium appeal for investors in higher tax brackets,” he said.
For small shareholders (holdings up to Rs 2 lakh), the opportunity looks better due to a higher likelihood of acceptance. SEBI mandates a 15% reservation for this category, which has historically led to higher acceptance ratios. Since Infosys’ promoters are not participating, the pool for small investors widens, potentially offering a guaranteed premium of over 15% on accepted shares.
However, experts warn that past buybacks have seen partial acceptance, leaving unaccepted shares exposed to post-buyback volatility.
Vinod Nair, Head of Research at Geojit Investments, said the upside for those buying ahead of the record date is limited given the large retail base of over 28 crore shares and a likely low acceptance ratio.
Meanwhile, Harshal Dasani, Business Head at INVAsset PMS, believes Infosys is on a recovery path with improving deal momentum and easing attrition. “For long-term investors, holding may yield better compounding benefits, while short-term investors can consider partial participation,” he said.
Infosys Stock Outlook
The IT sector remains clouded by global economic uncertainty and tighter client budgets, particularly in the US and Europe. Still, long-term prospects remain positive, driven by digital transformation, AI adoption, and cloud integration.
“Infosys stands out with 2.9% YoY constant currency growth despite a subdued environment,” said Nair. “With valuations around historical averages, the stock looks attractive for long-term investors.”
Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
November 11, 2025, 14:59 IST
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