Infosys Files Draft Offer for ₹18,000 Crore Share Buyback at ₹1,800 per Share

Bengaluru, October 23, 2025: Infosys Limited (NSE: INFY, BSE: 500209, NYSE: INFY) filed the Draft Letter of Offer (DLOF) for its proposed ₹18,000 crore share buyback, which was a step towards executing one of India’s most significant shareholder return initiatives in its IT segment. The buyback, initially approved by the Board on September 11, 2025, will acquire 10 crore fully paid-up issued, fully paid-up equity shares at ₹1,800 per equity share, representing about 2.41% of its standalone paid-up equity capital.

Buyback Highlights

Infosys has concluded a share purchase for ₹18,000 crore, issuing 10 crore equity shares at ₹1,800 per share, which will translate into 2.41% of its standalone capital. This purchase will be effected through a tender offer on stock exchanges and will be funded from the firm’s internal accruals and free reserves. No participation by promoters has been undertaken.

The buyback manager will be Kotak Mahindra Capital Company Ltd, and KFin Technologies Ltd will be the registrar. Since Infosys has a dual listing, the initial draft filing has been submitted to SEBI, BSE, NSE, and the U.S. SEC. On receiving regulatory approvals, Infosys will announce the record date and start a five-day tender period for eligible shareholders.

Promoters Opt Out

Infosys’ founders and their family members, including Nandan Nilekani, Narayana Murthy, Rohan Murty, Akshata Murty, Sudha Murty, and others, have duly signed letters affirming non-participation in the buyback on September 14–19, 2025. Their overall holding of 13.05% will remain unchanged in absolute value, resulting in a minor increase in ownership percentage after the buyback.

Strategic and Financial Context

Infosys added that its buyback aligns with its capital allocation framework, which seeks to return approximately 85% of cumulative free cash flow over five years through dividends and buybacks.

As of June 30, 2025, it had consolidated cash and investments of ₹45,204 crore, enabling the repurchase without impacting the operating fund. The transaction amounts to 24.31% of standalone free reserves and 21.68% of consolidated free reserves, comfortably below the regulatory maximum.

The company expects the buyback to:

• Increase return on equity (ROE) as well as earnings per share (EPS),
• Make a compelling buyout offer to shareholders, and
• Benefiting small investors through a 15% reserved quota.

Key Financial Metrics (Standalone Basis)

On a standalone basis, basic earnings per share (EPS) will advance from ₹61.58 to ₹63.10, whereas diluted EPS will move up from ₹61.46 to ₹62.98. Book value per share will decrease from ₹210.27 to ₹171.05, indicating a return of capital to shareholders.

The return on net worth will increase significantly, from 30.35% prior to the buyback to 38.59% after the buyback, while the company’s net worth will decrease from ₹87,332 crore to ₹69,332 crore, on a fully assumed basis, before tax and transaction costs.

Infosys’ auditors, Deloitte Haskins & Sells LLP, have certified that the company has adequate reserves and will remain solvent after the buyback. The audit report also confirms that Infosys has no external debt, ensuring a strong financial position.

Market Reaction

Infosys’ stock price was trading at ₹1,534, up 4.24%, as of 11:34 AM on 23 October 2025. The stock opened at ₹1,510, reaching a morning high of ₹1,543.90 and a low of ₹1,506 during the session. The company’s market capitalisation stands at ₹6.36 lakh crore, with a price-to-earnings (P/E) ratio of 22.66.

Infosys offers a dividend yield of 2.93%, distributing a quarterly dividend of ₹11.24 per share. Over the past 52 weeks, the stock’s lowest price was ₹1,307, while its all-time high reached ₹2,006.45.

What’s Next?

After SEBI’s review, Infosys will:

• Announce shareholder record date for eligibility.
• Issue the final Letter of Offer to shareholders.
• Launch a five-day tender period for participation.
• Complete payments and extinguish shares within five working days post-closure.

After its draft proposal was submitted, Infosys’ proposal for a buyback of ₹18,000 crore has reached its final regulatory level. Strong market reception shows that investors are optimistic about the company’s balance-sheet strength as well as its intention of returning steady shareholder gains.

REF: https://nsearchives.nseindia.com/corporate/Infosys_22102025144043_SE_Draft_LOA_22102025.pdf

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