Infosys Kicks Off Landmark Rs 18,000 Crore Share Buyback
Indian IT giant Infosys has initiated its most substantial share repurchase program to date, a monumental Rs 18,000 crore buyback that commenced for subscription on Thursday, November 20, 2025. According to a regulatory filing, the subscription window will remain open until November 26, 2025, offering eligible shareholders a significant opportunity.
Key Details of the Buyback Programme
The company plans to repurchase up to 10 crore fully paid-up equity shares, each with a face value of Rs 5. This represents approximately 2.41 per cent of Infosys's total paid-up equity share capital. The buyback price has been set at a substantial Rs 1,800 per equity share, presenting an attractive premium for participating investors.
In an official statement, Infosys clarified the rationale behind this strategic move, stating it follows a careful assessment of the company's medium-term strategic and operational cash requirements. The primary objective is to return surplus funds to shareholders in a manner that is both effective and efficient, fully aligning with the firm's established capital allocation policy.
Enhancing Long-Term Shareholder Value
This buyback is a core component of Infosys's broader commitment to its investors. The company has expressed its intention to steadily increase its annual dividend per share, excluding any special dividends. A key anticipated benefit of the buyback is the long-term enhancement of shareholder value, achieved by methodically reducing the company's equity base, which can lead to higher earnings per share.
Looking ahead, Infosys's Capital Allocation Policy outlines a clear roadmap. Starting from the financial year 2025, the IT major expects to continue its policy of returning about 85% of its free cash flow over a five-year period. This return will be executed through a combination of semi-annual dividends, share buybacks, and/or special dividends, all subject to applicable laws and necessary approvals.
A Look Back at Infosys's Buyback History
This is not the first time Infosys has embarked on such a initiative. The company's inaugural share buyback was announced in 2017, during which it purchased 11.3 crore shares (about 4.92% of its equity) for Rs 1,150 per share, totaling roughly Rs 13,000 crore.
Subsequent buybacks have reinforced this strategy. The Bengaluru-based tech leader announced a Rs 9,300 crore buyback in 2022 with a maximum price of Rs 1,850 per share. Prior to that, a Rs 8,260 crore buyback was conducted in 2019, followed by another worth Rs 9,200 crore. In a notable development for the current buyback, the company's promoters and promoter group, which includes prominent figures like Nandan M Nilekani and Sudha Murty, have decided not to participate. As of the buyback announcement date, the promoters collectively hold 13.05% of the company's equity.
