In a surprising move, the promoters of Infosys Ltd., including co-founders and their families, have decided not to participate in the company’s ₹18,000 crore share buyback program. The decision could benefit public shareholders as their share of the buyback will increase.
The Bengaluru-based IT giant announced this buyback plan to return excess cash to investors and improve shareholder value. The buyback is being conducted through the open market route at a maximum price of ₹1,650 per share.
Why Promoters Opted Out
The company’s promoters, who collectively hold around 13% stake, said their decision to stay out reflects their confidence in Infosys’s long-term growth prospects. By not tendering their shares, they are signalling trust in the company’s fundamentals, digital business expansion, and future profitability.
Impact on Investors
Market experts believe the move will have a positive impact on Infosys’s stock, as it demonstrates promoter confidence. The remaining shareholders now stand to gain more from the buyback since the promoters’ portion will be redistributed.
Infosys shares have been rising steadily since the announcement, reflecting growing investor optimism.
Summary Table
| Particulars | Details |
|---|---|
| Company | Infosys Ltd. |
| Buyback Size | ₹18,000 crore |
| Buyback Route | Open market |
| Maximum Price per Share | ₹1,650 |
| Promoter Participation | Opted out |
| Promoter Holding | ~13% |
| Key Reason | Confidence in long-term growth |
| Impact on Public Shareholders | Higher allocation in buyback |
| Market Sentiment | Positive |
| Headquarters | Bengaluru, India |
