Key Points:
- Infosys approves ₹18,000 crore buyback at 19% premium.
- Buyback strengthens shareholder returns and EPS.
- Partners with HanesBrands for 10-year AI-driven digital growth.
Infosys Ltd., India’s second-largest IT services provider, has announced approval for its biggest-ever Infosys share buyback program, valued at ₹18,000 crore. The company’s board of directors cleared the proposal on September 11, marking a significant step in its ongoing strategy to return surplus cash to shareholders.
Under the plan, Infosys will repurchase 10 crore fully paid-up equity shares with a face value of ₹5 each. The buyback will be executed at ₹1,800 per share, representing a 19% premium over Thursday’s closing price of ₹1,509.50 on the Bombay Stock Exchange (BSE). This accounts for up to 2.41% of the company’s total paid-up equity share capital.
The program now awaits shareholder approval before it can be carried out.
Details of the Buyback and Market Response
Infosys reported free cash flow of $884 million (approximately ₹7,805 crore) in the June 2025 quarter, providing financial strength for the record Infosys share buyback. According to the company’s filing, the move reflects both strong liquidity and commitment to shareholder value creation.
Despite the announcement, Infosys shares fell in Thursday’s trading. On the BSE, the stock closed at ₹1,509.50, down 1.51% from the previous session, while on the National Stock Exchange (NSE), it ended at ₹1,512.20, a decline of 1.33%. Analysts attribute the dip to short-term market dynamics rather than the long-term impact of the of the Infosys share buyback.
Market experts note that such a large buyback signals management’s confidence in the company’s future growth trajectory. It is also expected to improve earnings per share by reducing the overall equity base.
Infosys’ Buyback History
Infosys has used share repurchases as a consistent method to distribute excess cash over the last decade. Its first buyback took place in 2017, amounting to ₹13,000 crore through a tender offer at ₹1,150 per share, covering 11.3 crore shares.
In 2019, the company completed another buyback worth ₹8,260 crore. Two years later, in 2021, Infosys launched an open-market buyback of ₹9,200 crore at a maximum price of ₹1,750 per share, during a period of heightened global demand for digital transformation services.
The most recent buyback prior to this year was in 2022, when the company repurchased shares worth ₹9,300 crore at ₹1,850 per share. Compared to these earlier transactions, the 2025 program nearly doubles the scale of capital allocation.
Analysts’ View and Strategic Developments
Analysts believe the Infosys share buyback is not only a financial decision but also a strong message of resilience amid global economic uncertainties. With IT spending patterns shifting due to inflationary pressures and evolving digital needs, the move reassures investors of Infosys’ stability and long-term vision.
“Infosys’ largest-ever buyback demonstrates the company’s confidence in sustained cash generation and reinforces its commitment to delivering shareholder returns,” one market strategist observed. “It may also trigger positive sentiment across the broader IT sector.”
In addition to the buyback announcement, Infosys revealed a new strategic alliance with HanesBrands Inc., a global apparel leader. The ten-year partnership will focus on modernizing HanesBrands’ digital business applications and data infrastructure.
Infosys plans to leverage its proprietary Live Enterprise Automation Platform (LEAP), integrated within the Infosys Topaz suite, to enable generative AI and AIOps solutions. The collaboration aims to enhance agility, simplify IT landscapes, and unlock data-driven insights for HanesBrands’ operations worldwide.
Broader Implications
The record-breaking of the Infosys share buyback and strategic partnership highlight Infosys’ dual approach: rewarding investors while investing in long-term growth opportunities. For shareholders, the premium buyback price represents an attractive exit option, while for the company, the reduced share count strengthens earnings per share.
As Infosys positions itself for the next phase of digital transformation, its aggressive capital allocation strategy and high-profile global alliances are expected to keep it at the forefront of the IT services industry.
At present, investor attention remains fixed on shareholder approval for the Infosys share buyback, which, if cleared, will mark another milestone in Infosys’ history of balancing financial prudence with growth ambition.
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