Infosys Market Cap Jumps Rs 40,000 Crore on Biggest-Ever Buyback Plan

By siliconindia | Friday, 12 September 2025, 11:29 Hrs

Infosys announced its biggest-ever share buyback plan worth Rs 18,000 crore, sending shares up 2.2 percent intraday before settling 1.34 percent higher at Rs 1,529.9.
The company will repurchase 100 million shares at Rs 1,800 each, a 19.3 percent premium, marking its fifth buyback since 2017.
Brokerage Nomura retained a Buy call with a target of Rs 1,880, citing strong shareholder returns and projected revenue growth of 3.8 percent in FY26.

Infosys shares climbed over 2 percent on Friday after the IT giant announced its largest ever share buyback plan of Rs 18,000 crore, its fifth such repurchase program. The share rose up to 2.20 percent to Rs 1,542.9 intraday, its steepest intraday advance since September 9, before easing to trade 1.34 percent higher at Rs 1,529.9 per share by 10:06 AM, outpacing the Nifty 50, which was up 0.26 percent.

The company's market cap has risen by almost Rs 40,000 crore since Infosys initially announced on September 8 that it would explore a buyback. That took its value to Rs 6.35 trillion. Volumes also surged, with shares trading at 4.5 times their 30-day average, Bloomberg data indicated. While this rally, Infosys shares are still down 18 percent this year to date, against a 6 percent rise in the benchmark index.

Infosys will buy back 100 million shares at an average price of Rs 1,800 each, 19.3 percent higher than Thursday's closing price of Rs 1,509.50, under the buyback proposal. This is 2.41 percent of the paid-up equity share capital of the company. The decision comes at a time when IT shares have been facing a tough time because of a poor global macroeconomic environment and doubts over tariffs.

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The firm based in Bengaluru has already conducted four buybacks in the past: in 2017, when it bought 113 million shares for Rs 13,000 crore; in 2019, when it acquired 110.5 million shares for Rs 8,260 crore; in 2021, when it acquired 55.8 million shares for Rs 9,200 crore; and in 2022, when it acquired 60.4 million shares for Rs 9,300 crore.

Brokerage Nomura greeted the news, adding that besides a projected dividend of Rs 55 per share, Infosys is to return over 100 percent of its free cash flow in FY26 to shareholders. The buyback, it further added, is expected to be earnings per share neutral for that year. Reaffirming its optimistic stance, Nomura had a 'Buy' call on the stock with a target price of Rs 1,880, which puts it at 25 times FY27 earnings per share.

The brokerage firm is hoping for Infosys to see 3.8 percent year-on-year dollar revenue growth in FY26, with about 40 basis points coming from acquisitions, excluding the just-announced Versent deal. Infosys, together with Cognizant, remains one of Nomura's favorite names in the large-cap IT segment.