New Delhi Shares of Infosys Limited surged over 4 per cent on Tuesday after the IT major announced that its board will meet on September 11 to consider an equity share buyback.
Infosys stock closed at Rs 1,496.30, up Rs 63.40 or 4.42 per cent. Over the past five days, the stock gained Rs 7, a 0.47 per cent increase.
According to reports, the Bengaluru-based firm plans to spend around Rs 13,560 crore on the buyback, at an average premium of 25 per cent per share. If approved, this would mark Infosys’ fifth share repurchase. The company’s first buyback in 2017 was valued at Rs 13,000 crore, while its most recent in 2022 amounted to Rs 9,300 crore at Rs 1,850 per share.
As of Q1 FY26, Infosys holds cash and cash equivalents worth Rs 45,200 crore and has a net worth of Rs 95,350 crore.
Infosys was the biggest gainer on the Nifty today and the top contributor to the Nifty IT index, which opened 1.7 per cent higher.
Of the 50 analysts tracking Infosys, 35 recommend a ‘buy,’ 13 suggest a ‘hold,’ and two advise a ‘sell.’
Share buybacks reduce outstanding shares, boosting Earnings per Share (EPS) and often enhancing stock valuations.
In the past month, Infosys shares have risen Rs 68.10 (4.77%), though the stock has fallen Rs 205.15 (12.06%) in the last six months and dropped Rs 398.35 (21.02%) over the past year.
With inputs from IANS