Infosys Procures 5.58 Crore Shares Worth INR9,200 Crore in Buyback Bid

IT giant Infosys states it has bought back more than 5.58 crore equity shares as part of it’s 9,200 crore buyback offer. The shares were bought back at a volume-weighted average price of Rs 1,648.53 per equity share, according to public notice.

It states, "The company bought back a total of 5,58,07,337 equity shares (1.31 percent of the pre-buyback paid-up equity share capital of the company) and the total amount utilised towards the buyback is Rs 9199,99,99,599.80 (excluding transaction costs).”

The highest price at which the equity shares were bought back has been estimated to 1,750, while the lowest price was 1,538.10 per equity share.

The notice states, "The equity shares were bought back at a volume-weighted average price of 1,648.53 per equity share...The company has extinguished all the equity shares purchased under the buyback."

After the buyback, the promoter shareholding has increased to 13.12 percent from 12.95 percent, it added.

Infosys board had sanctioned up to 9,200 crore buyback plan, which commenced on June 25. The IT major had proposed to purchase back shares at a maximum price of Rs 1,750 apiece via open market through Indian stock exchanges. The offer closed on September 8, 2021.

From 2019-20, Infosys had enhanced its capital allocation plan and had said it will return 85 percent of free cash flow cumulatively over five years via buyback and dividends. In April, Infosys board had recommended a capital return of Rs 15,600 crore, including a final dividend of Rs 6,400 crore and open market buyback of shares of Rs 9,200 crore.

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