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IT major Infosys Ltd on Tuesday (November 18) said it will open its buyback window on November 20, 2025; What investors should know
Infosys share buyback.
Infosys Share Buyback: IT major Infosys Ltd on Tuesday (November 18) said it will open its buyback window on November 20, 2025, for up to 10 crore fully paid-up equity shares of face value Rs 5 each. This represents 2.41% of its paid-up equity share capital on a standalone basis. The buyback will be conducted through the tender offer route at Rs 1,800 per share, aggregating to Rs 18,000 crore. The buyback window will close on November 26.
Small shareholders can tender two equity shares for every 11 shares held as of the November 14 record date. General category shareholders are entitled to tender 17 equity shares for every 706 shares held. Kotak Mahindra Capital Company Limited is the manager to the buyback, while KFin Technologies Limited will serve as the registrar.
Infosys said the buyback is being undertaken after considering its medium-term operational and strategic cash requirements and to return surplus funds to shareholders effectively in line with its capital allocation policy.
Purpose of the Buyback
Infosys aims to steadily increase its annual dividend per share (excluding special dividends) and believes the buyback will enhance long-term shareholder value by reducing the equity base.
As per the company’s Capital Allocation Policy, “Effective from financial year 2025, the Company expects to continue its policy of returning approximately 85 per cent of the free cash flow cumulatively over a 5-year period through a combination of semi-annual dividends and/or share buybacks/special dividends, subject to applicable laws and requisite approvals, if any.”
Promoters and promoter group members, including Nandan M Nilekani and Sudha Murty, will not participate in the buyback. They collectively hold 13.05% of the company’s equity as of the announcement date.
Infosys Buyback: How many of your shares are eligible for tendering?
The ratio of buyback from the reserved category is set at 2:11, that is, 2 equity shares for every 11 equity shares held. For the general category, the ratio is 17:706.
Entitlement is the number of equity shares that an eligible shareholder is entitled to tender in the buyback, against the number of equity shares held by them on the record date.
Infosys share buyback: Tax implications
The next big question is, do these buybacks have tax implications? As per the new tax rules that came into force on October 1, 2024, there is no tax levied on the company. The amount that the shareholders get is deemed the same as a dividend, and they need to pay tax as per the income tax slab they qualify for.
Analyst Commentary
When Infosys first announced the buyback, analysts covering the IT sector described it as a strong signal of the management’s confidence in the company’s long-term prospects. Even though Infosys’ share price has come under pressure due to a difficult year marked by valuation concerns and demand weakness, its substantial cash reserves enable the company to reward shareholders and indicate that current valuations remain attractive.
Over the past year, Infosys has grappled with slower discretionary tech spending, regulatory uncertainties in the US, and a broader industry pivot toward AI-led transformation. These challenges have weighed on sentiment and contributed to share price volatility.
However, analysts believe Infosys continues to possess robust fundamentals—including a healthy deal pipeline, solid cash flows, and a strong global delivery track record. The buyback highlights management’s conviction that the company is well-positioned for recovery as tech budgets stabilise and AI-led demand accelerates.
Buyback History
Infosys announced its first share buyback in 2017, repurchasing 11.3 crore shares (4.92% of its paid-up equity share capital) at Rs 1,150 per share for approximately Rs 13,000 crore.
In 2019, the company undertook an Rs 8,260 crore buyback, followed by another worth Rs 9,200 crore. Its most recent programme before this one was a Rs 9,300 crore buyback in 2022–23 conducted through the open market at a maximum price of Rs 1,850 per share.
In Wednesday morning trade, Infosys shares were trading 2% higher at Rs 1,516 on the NSE.
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 19, 2025, 10:21 IST
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