“Infy is one of the most highly held stocks by investors, and the record date for their massive buyback is November 14th, the biggest buyback ever in India,” Kamath said, explaining in detail how gains from the offer are taxed as “income from other sources” and why it may not be as straightforward a windfall as many assume.
Kamath said that investors eligible for the buyback, for those holding Infosys shares in their demat accounts as of November 14, need to understand the taxation rules before tendering their shares.
“If you participate in the buyback at Rs 1,800 (current price is ~Rs 1,550), here’s the taxation: The money you receive from the buyback is considered income from other sources and is taxed at your applicable slab rate. And, the entire investment value is then considered as a capital loss,” he said.
He said that the buyback could make sense only under specific conditions. “One scenario where the buyback becomes attractive is when you have other capital gains that can be offset against these capital losses. By the way, if the investment was done <1 year, then it is a short-term capital loss, and >1 year, it is a long-term capital loss. Otherwise, it is essentially like a dividend.”
Kamath also pointed out that Zerodha’s platform has tools to help investors navigate such calculations. Link to the post: https://x.com/Nithin0dha/status/1988862914544222559?t=LJLTndoHaLKLB-PrgFNipg&s=08
Infosys’ biggest-ever buyback
Infosys Ltd, India’s second-largest IT services firm, had announced its largest-ever buyback on September 12, 2025, aiming to repurchase 10 crore shares at Rs 1,800 apiece, a 19% premium over the market price at the time of announcement. The Rs 18,000 crore programme represents about 2.41% of the company’s paid-up equity capital and is its fourth buyback since 2017.
The company’s promoters, including co-founders N.R. Narayana Murthy, Nandan Nilekani, and Sudha Murty, have opted not to participate in the offer. If fully subscribed, promoter shareholding would inch up from 13.05% to 13.37%, while public ownership would fall slightly to 86.63%.
Shareholders must own Infosys shares by Thursday, November 13, to qualify for the buyback, given India’s T+1 settlement cycle. Shares bought on the record date itself will not be eligible.
Investor buzz ahead of the record date
Analysts have been upbeat on Infosys shares ahead of the buyback. Nilesh Jain of Centrum Broking expects the stock to trade between Rs 1,550 and Rs 1,600 in the near term, while Anuj Gupta of Ya Wealth Global Research said the event presents a “good opportunity for short-term gains” for existing shareholders.
Infosys shares closed at around Rs 1,550 on Wednesday, implying a 16% premium in the buyback price.
Also read | Infosys’ Rs 18,000 cr buyback: 10 things to know ahead of Nov 14 record date
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)
