Infosys, one of India’s biggest IT companies, announced that it will buy back its shares worth INR 18,000 crore. The company aims to buy its shares from the existing shareholders at a fixed price to reduce the shares in circulation. It set a price of INR 1,800 per share, and about 10 crore shares are under the target, which is about 2.41% of its total number of shares. However, the real question looms: why is Infosys buying back its shares right now? How does it affect the investors? And what does it mean to the promoters? For all that, learn more.
Who Are the Promoters?
The promoters of Infosys are the founders and their respective families. These individuals are the founders of the company and still hold shares in it. They altogether own about 13.05% of Infosys shares. The list includes:
- Nandan Nilekani (Co-founder and current Chairman) and his family members, namely, Rohini, Nihar, and Janhavi Nilekani.
- N. R. Narayana Murthy’s family includes his wife Sudha Murty, daughter Akshata Murty (married to UK PM Rishi Sunak), and son Rohan Murty.
- These people are important because they own a significant portion of the company, and the buyback would be expected from them as well. Now, the real question is, are they ready?
What Did the Promoters of Infosys Decide?
They all have collectively decided not to sell their shares in this INR 18,000 crore buyback. They all made it clear in the letters sent to the company between September 14 and 19, 2025. Therefore, the promoters of Infosys will hold their shares for now.
What Does This Mean to the Promoters of Infosys?
The company aims to repurchase shares from the general public, thereby reducing the total number of shares in the market. This will have a positive impact on promoters because it slightly increases the percentage of ownership (voting power).
Why Is Infosys Doing This Now?
According to Infosys, this buyback is part of its Capital Allocation Policy, meaning how the company decides to use its money. It wants to:
- Return extra (surplus) money to shareholders efficiently.
- Invest in the future growth of the company.
- To have a balance between dividends and buybacks.It also wants to return about 85% of its free cash flow to its shareholders in the next five years via dividends and buybacks.
Effect on Investors
- It’s good news for investors, of course, as it sends out a signal that Infosys is confident about its financial growth and health.
- The share price will improve over time as fewer shares are circulating in the market, which leads to higher earnings per share (EPS).
- The share price of Infosys closed at INR 1,472 on October 21, which was up by 0.72% from the previous day.
Vivek Dev Jacob
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