The buyback proposal, the first in three years and fifth in the last eight years, is understood to be the largest ever share buyback programme in the company’s history.
Under a buyback through the tender offer, a company usually offers to repurchase a specific number of shares at a fixed price that is higher than the current market price. This offer is open for a limited period, and shareholders can offer their shares to the company.
The buyback of up to 10,00,00,000 (100 million) equity shares does not exceed 25% of the aggregate paid-up capital and represents up to 2.41% of the total shares in the existing total paid-up equity share capital of the company (on a standalone basis), the filing added.
The buyback programme was announced after its board of directors of the Bengaluru-headquartered company approved the proposal during a meeting ending late Thursday evening.
The buyback offer is subject to the approval of the shareholders by way of a special resolution. Prior to the buyback, promoters hold 13.05% stake in Infosys. Analysts believe the timing of this buyback could prove more supportive for the stock. Since the company made the buyback plan public on September 8, Infosys stock price rose 7%.
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