Winning Bizness Desk
Mumbai. Infosys, one of India’s largest IT companies, will soon begin a massive Rs 18,000 crore share buyback programme, marking the largest buyback in its corporate history. The decision was taken at the board meeting held on September 11, 2025.
According to the board decision, Infosys will repurchase nearly 10 crore shares at Rs 1,800 each. This will cover about 2.4 percent of the company’s total share capital. It is the company’s first buyback since 2022 and the fifth since its stock market listing in 1993.
Funds secured from strong cash reserves
Reports indicate that Infosys has around Rs 45,200 crore in cash and cash equivalents, ensuring that the buyback programme is well funded. The company will use these reserves to carry out the buyback without any financial strain.
What buyback means for shareholders
A buyback happens when a company purchases its own shares from investors, reducing the total number of shares available in the market. This often improves the earnings per share, boosts market confidence, and signals to investors that the company believes its stock is undervalued.
Expected benefits for retail investors
For small investors, commonly known as retail investors, this buyback is a significant opportunity. Under SEBI guidelines, 15 percent of the buyback portion is reserved for retail participants. In earlier buybacks, such as the one in 2017 worth Rs 13,000 crore, Infosys allocated nearly Rs 1,950 crore specifically for retail investors.
Impact on stock market price
While the buyback price is set at Rs 1,800 per share, it does not guarantee that the stock will trade at this level. The current market price of Infosys is around Rs 1,510, which means the buyback price represents nearly a 19 percent premium. Market experts believe that while the stock price may rise, it is unlikely to reach the exact buyback price. Historically, buybacks have sometimes led to short-term gains followed by small corrections, as seen in 2021 when Infosys shares dipped 3.3 percent after a buyback.
Strong signal of company confidence
Market analysts consider this buyback a positive signal that Infosys is confident in its long-term growth. By committing to a large-scale repurchase, the company is showing strength in both financial position and future outlook. Investors often take such moves as reassurance about the company’s stability.
Background of Infosys and its journey
Founded in 1981 by Narayana Murthy with a capital of just 250 dollars (about Rs 21,000 in today’s value), Infosys has grown into a global IT and consulting leader. Today, the company is listed on the New York Stock Exchange and serves nearly 1,900 clients across 56 countries.
Leadership and global presence
Infosys currently operates through 13 subsidiary companies worldwide. Salil Parekh serves as the CEO and Managing Director, while D Sundaram is the Lead Independent Director. The company continues to be one of the flagbearers of India’s IT sector, consistently investing in innovation, digital services, and consulting solutions.
Key points in a nutshell
1. Infosys to launch Rs 18,000 crore share buyback.
2. This is the largest buyback in company history.
3. About 10 crore shares will be repurchased at Rs 1,800 each.
4. Buyback covers 2.4 percent of total share capital.
5. Company has Rs 45,200 crore cash reserves to fund it.
6. Retail investors benefit as 15 percent is reserved for them.
7. Buyback signals strong financial health and investor confidence.
