Infosys Board of Directors pays tribute to Rs 180,000 crore share buyback
IT Infosys board approved a proposed share buyback worth Rs 180,000 crore on Thursday.
Repurchase – Approved in Rs 1,800 per share – will be It accounts for 19.2% of current market prices and 2.41% of IT professional stocks.
This marks the first buyback for software exporters in more than two years.
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Infosys shares were 1.5% lower on BSE at Rs 1,509.5 earlier on Thursday.
Infosys Board of Directors approved first purchases for more than 2 years
Infosys completed its last share buyback in February 2023.
The buyback is worth Rs 93 billion, which is Rs 1,850 respectively, which is above 30% of the market price.
It opened on December 7, 2022 and closed on February 13, 2023.
According to the buyback, the company repurchased about 6.04 billion shares, accounting for about 1.44% of its total equity.
Infosys has gained a wealth of investors in the past
The Bangalore-based IT professional Grand Slam has a history of shareholder rewards, with a mix of dividends and bonuses every few months.
The company pays dividends regularly, temporary and final dividends announced almost every six months.
What is a repurchase? Why does the company repurchase its shares?
Stock buybacks occur when listed companies buy their own shares from the market or directly from investors – also known as stock buybacks in market conditions.
Stock buybacks reduce the total stocks in the market circulation.
Typically, stock buybacks are offered at a premium price and tend to increase the company’s earnings per share (EPS).
The company chooses to repurchase for a variety of reasons. The buyback not only sent a message to investors, the company strongly believed that its stock was undervalued, but also allowed the company to reward its shareholders in a more taxable way than dividends.
It also allows companies to improve important financial metrics such as EPS, Return on Equity (ROE) and Return on Capital (ROC).
