₹18,000 Crore Buyback: Is Infosys Rewarding Investors or Masking Slow Growth?

On 12th September 2025, Infosys announced its fifth and largest share buyback yet: ₹18,000 crore for 10 crore shares at ₹1,800 each. The move sent ripples across the market, lifting the stock by 2.5%, and reigniting debates about whether this is a bet on shareholder gains or the company’s growth story.

Spanning 50 countries with over 300,000 employees, it has steadily grown in market value. Its buyback journey, starting in 2017 with ₹13,000 crore, has been repeated through 2019, 2021, and 2022, culminating this year in its largest move yet.

What Is Infosys?

Infosys was founded by Mr. N. R. Narayana Murthy in 1981, Bengaluru. One of the leading worldwide IT services and consulting company. It offers services in digital transformation, consulting, application development, cloud, artificial intelligence, cybersecurity, and business process management across industries. Infosys has a global presence, operating in 50+ countries with over 3,00,000 workers serving clients worldwide. With a market valuation of more than 70 billion USD, it is one of India’s leading IT corporations, continuously providing high revenues and profits.

Impact On Shareholders

Long-term and short-term shareholders are both affected by this buyback. Short-term shareholders are selling at a high price, while long-term owners are considering staying with the company. Both types of strategies are impressive. Short-term shareholders view this as a fast track to riches, while long-term holders benefit indirectly, as the buyback reduces the number of shares in circulation, which could boost earnings per share (EPS) and potentially enhance future stock valuations, setting a path for long-term prosperity.

Impact On Market

In February 1993, Infosys launched its initial public offering (IPO) at ₹95 per share. As of 2025, the stock price has risen to around ₹1,800 reflecting the company’s remarkable long-term growth and wealth creation for its shareholders.

Infosys Share Buyback

The share price increased by 2.50%, before the announcement share price was around ₹1,509.70 (closing price on 11th September 2025). After the buyback announcement on 12th September, the share price saw some volatility of ₹1,800. An indication of a good monopoly in the AI and digital service sectors. The company offers a 19% premium, which attracts all shareholders and future investors. Investors can make a lot of money in the short term. This has a beneficial impact on the market. After the H1-B visa boom, the IT sector has declined, yet Infosys’s share price continues to rise.

Impact On The Company

Infosys is offering higher payouts to shareholders through buybacks, which can temporarily drain the company’s financial resources but also create room for strategic restructuring when required. The long-term objectives of Infosys’s share buyback program include returning excess cash to shareholders, optimizing its capital structure, improving key financial metrics such as earnings per share (EPS) and return on equity (ROE), and signaling management’s confidence that the company’s stock is undervalued. In addition, buybacks gradually increase each shareholder’s ownership percentage by reducing the total number of outstanding shares.

Buyback Route

What is a share buyback?

A share buyback, also known as a share repurchase, is a corporate move in which a firm buys back its own stock from current owners. This reduces the overall number of shares accessible on the market.

Companies often do buybacks in two ways, one is Open Market Route, The corporation purchases shares directly from the stock exchange, just like any investor. (SEBI has phased out this method.) and second is Tender Offer: A corporation encourages shareholders to sell their shares at a predetermined price, typically higher than the market price, for a set length of time.

Why Companies Do Buybacks?

Buybacks are more than simply financial housekeeping; they also have strategic reasons.

Companies may reduce shares to improve shareholder value by increasing earnings per share (EPS), which can lead to higher valuations. It’s a tax-efficient strategy to return money to shareholders, as opposed to retaining idle capital or paying dividends. Buybacks can demonstrate management’s belief in a company’s fundamentals and signal undervaluation.

About The Infosys Share Buyback

Details on Infosys’s ₹18,000 crore buyback. Here are the highlights from Infosys’s announcement:

Click Here To Check: Infosys Share Price Today

Tax, Regulatory & Legal Aspects:

The tax implications of a share buyback shifted dramatically last year. Under the most recent tax rules, which went into effect on October 1, 2024, the sum obtained from a repurchase is now taxable in the hands of shareholders as “deemed dividend” and is taxed as “income from other sources” at relevant rates.

Buyback History:

Infosys has a long-standing history of rewarding its shareholders through buybacks. The company has conducted multiple buyback programs over the years, gradually increasing in scale as it accumulated excess cash and sought to optimize its capital structure. Each buyback reflected management’s confidence in the company’s valuation and commitment to enhancing shareholder wealth. Notably, the recent buybacks have been among the largest in the IT sector, offering substantial premiums to shareholders and demonstrating Infosys’s consistent focus on maintaining strong financial metrics while returning value to investors.

1st Buyback of 2017:

Initiated Infosys first share buyback was in 2017, repurchasing shares worth ₹13,000 crore at a 25% premium over the market price. This strategic action aimed to return surplus cash to shareholders while also optimizing the company’s capital structure.

2nd Buyback of 2019:

The second buyback totaled ₹8,260 crore and repurchased approximately 110.5 million shares at ₹747 per share. The premium was approximately 18% higher than the current market price at the time, and was done through the open market route.

3rd Buyback of 2021:

Third repurchase: In October 2021, it launched its third share buyback program. The buyback totaled ₹9,200 crore, with a maximum price of ₹1,750 per share. As part of this initiative, the business repurchased about 5.58 crore shares. The buyback occurred on the open market.

4th Buyback of 2022:

In October 2022, Infosys carried out its fourth share buyback campaign. This buyback took place on the open market. The buyback totaled ₹9,300 crore with a maximum price of ₹1,850 per share.

5th Buyback of 2025:

One of the largest buybacks happened on 12th September 2025. Where Infosys’ share buyback is 18,000 cr with a premium of more than 19%. Stock’s closing price was ₹1,509.70 on September 11, 2025, after the announcement, it skyrocketed to ₹1,800.

How To Participate In a Buyback?

To be eligible for the buyback, the investor must have Infosys Limited shares in demat or physical form as of the record date (To be updated). Once you have shares in demat, you can participate in the repurchase process, which begins on (To be updated), by selling them through your broker on the NSE or BSE3. Then, on (To be updated), you will receive payment for accepted shares, and unaccepted shares will be refunded to your demat account.

Summary

• In September 2025, Infosys announced its fifth and largest buyback of ₹18,000 crore, repurchasing 10 crore shares at ₹1,800 each.
• The buyback price, over 19% higher than the previous closing of ₹1,509.70, makes it attractive for investors seeking quick returns.
• Infosys shares rose 2.5% on the announcement, reflecting investor confidence and the company’s strong position in IT and digital services.
• The buyback is funded through free reserves and cash of around ₹42,000 crore, highlighting Infosys’s robust financial health.
• Payments will be taxable as “deemed dividends” from October 2024, reducing net post-tax returns compared to earlier buybacks.
• Since 2017, Infosys has completed four buybacks totalling over ₹39,760 crore, with the 2025 buyback being the largest, showing a strong focus on returning value to shareholders.

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FAQ’s

Am I qualified to participate in Infosys’ buyback?

Infosys will notify the record date, which determines eligibility. Only shareholders with shares in their demat accounts on that date are eligible to participate in the buyback.

How do I tender my shares for the buyback?

Once the tender offer window opens, you can submit your shares using your broker or trading platform. The procedure is typically available in the corporate actions section of your demat or trading account.

Will all of my tendered shares be accepted?

Not necessarily. Acceptance depends on the entitlement ratio and the total number of shares tendered. If more shares are offered than the buyback size, acceptance is proportionate.

What price will I receive if my shares are accepted?

All approved shares will be repurchased at the predetermined buyback price of ₹1,800 per share, regardless of the market price at the time of tendering.

What will happen if I do not participate in the buyback?

If you choose not to tender, you retain your shares. Since the total number of outstanding shares decreases after the buyback, your percentage ownership in Infosys will slightly increase.

Are there any tax implications for participating in the buyback?

Yes. Under the current rules effective from October 1, 2024, proceeds received from the buyback are treated as “income from other sources” and taxed accordingly in the hands of the shareholder.

Can I participate partially?

Yes. Shareholders can choose to tender a portion of their holdings. The acceptance will still follow the proportionate basis if oversubscription occurs.

How long does the buyback process take?

The tendering window usually lasts a few weeks. After the window closes, Infosys processes the shares and credits the buyback amount to shareholders’ accounts, typically within a few days.

Will participating in the buyback affect my voting rights?

Yes. Shares that are tendered and accepted in the buyback are cancelled, so your total voting power in the company may reduce slightly if you sell shares.

Is there any brokerage or fee for participating?

Generally, there are no brokerage charges for tendering shares in the buyback, but you should check with your broker to confirm.