Infosys may bring a buyback of ₹ 13,560 crore: This will be discussed in the board meeting on September 11, know what effect it will have on investors

IT sector company Infosys may soon decide to buyback i.e. buy back shares. In the board meeting to be held on September 11, the company will consider the proposal of share buyback.

After this news, the company’s stock is trading at Rs 1,504 on NSE with a gain of 5% today. This will be the company’s first share buyback since 2022 and the fifth share buyback since listing in 1993.

Question 1: What is Infosys share buyback?

Answer: Infosys recently announced that it is considering buying back its shares. This buyback is happening for the first time after three years. Buyback means that the company will buy back its own shares from the market, which will reduce the number of shares in the market and the value of the share may increase. Its board meeting will be held on 11 September 2025, where a decision will be taken on this proposal.

Question 2: How big is this buyback and where will the money come from?

Answer: According to reports, Infosys may spend around Rs 13,560 crore for this buyback. The company currently has cash and cash equivalents of Rs 45,200 crore, which can easily fund this buyback. The total net worth of the company is Rs 95,350 crore and this buyback can be 14-15% of it.

Question 3: What does share buyback mean and why is it done?

Answer: In simple language, share buyback occurs when a company buys back its own shares from investors. There are many benefits of doing this:

Fewer shares, more value: Due to the reduction in the number of shares, the earnings per share (EPS) increases, which can lead to an increase in the share price.

Use of cash: If the company has excess cash, it benefits investors by investing it in buyback.

Message of confidence: The company shows through buyback that it has faith in its future and feels that its shares are undervalued.

Question 4: What does this mean for retail investors?

Answer: Buyback can be a good opportunity for retail investors, that is, those who have shares worth up to Rs 2 lakh. According to SEBI rules, 15% of the buyback is reserved for retail investors.

For example, in 2017, Infosys kept Rs 1,950 crore for retail investors in a buyback of Rs 13,000 crore. However, before participating in the buyback, investors will have to see whether the buyback price is more than the current price of their shares or not.

Question 5: Will the share price increase due to buyback?

Answer: Yes, usually the buyback is likely to increase the share price as the number of shares in the market decreases, which may increase the demand. The announcement of the buyback shows the confidence of the company, which increases the confidence of investors.

Brokerage houses like Morgan Stanley believe that Infosys stock may perform better than the Nifty IT index in the next 60 days. However, some experts say that the share price may also fall slightly after the buyback, like in 2021, a decline of 3.3% was seen after the buyback.