Infosys Shares Dip Ahead of Board Meet to Consider Buyback

Infosys shares opened in the red on Thursday, September 11, as investor focus shifted to the company’s crucial board meeting scheduled for the day. The stock had already gained momentum earlier in the week but saw some profit booking ahead of the announcement.

Over the past two sessions, Infosys rallied by nearly 7% or ₹100 per share, with a 5% surge on Tuesday and a further 2% rise on Wednesday. The stock ended at ₹1,532, though it remains down 18% on a year-to-date basis.

Growth Across Segments

While the IT sector has been facing global macroeconomic uncertainty, Infosys continues to remain one of the top players in the industry. Its growth across consulting, digital services, and cloud solutions remains a long-term driver, though short-term challenges are impacting investor sentiment.

Financial Highlights

As of June 2025, Infosys had cash reserves of nearly ₹24,500 crore on its books, giving the company ample flexibility to reward shareholders through buybacks and dividends.

Brokerage firm Morgan Stanley estimates the buyback size between ₹10,000 crore and ₹14,000 crore, with the potential buyback price usually offered at an 18–25% premium over the previous closing price.

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Analysis

This proposed buyback will be Infosys’ fifth in the last eight years and the first since 2022. The earlier buybacks were executed via open market operations. However, with such buybacks being phased out from April 1, 2025, the current one is expected to follow the tender offer route.

Analysts believe the timing is interesting given the global macroeconomic uncertainty. A buyback signals management’s confidence in the company’s fundamentals and could act as a catalyst for the stock in the near term.

Asset Quality

Infosys’ strong cash reserves, zero-debt position, and consistent profitability underline its solid asset quality. This financial strength makes it possible for the company to return wealth to shareholders while continuing investments in technology and expansion.

Lending Mix

Though Infosys does not follow a lending model like financial companies, its capital allocation strategy remains conservative. The company balances reinvestment in growth with shareholder rewards, a mix that has supported long-term investor trust.

Leadership Change

The Infosys leadership has consistently focused on strategic clarity, operational efficiency, and maintaining client trust. The board’s decision on the buyback today will further reflect its vision for delivering value to shareholders amid global headwinds.

Digital Expansion

Infosys continues to prioritize digital transformation, cloud adoption, and AI-driven services, areas that are expected to drive the next leg of growth. These strategic bets could help the company sustain momentum even during volatile global conditions.

Conclusion

Infosys shares opened lower today as the market waits for clarity on the buyback proposal. With a history of rewarding shareholders and a strong balance sheet, the IT major is expected to make another significant announcement through this buyback.

The final decision from the board could be a turning point for the stock, especially at a time when the IT sector faces global uncertainties.

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