{"id":15834,"date":"2025-10-23T11:17:30","date_gmt":"2025-10-23T05:47:30","guid":{"rendered":"https:\/\/trending.niftytrader.in\/?p=15834"},"modified":"2025-10-23T17:06:56","modified_gmt":"2025-10-23T11:36:56","slug":"infosys-promoters-skip-buyback","status":"publish","type":"post","link":"https:\/\/www.niftytrader.in\/markets\/infosys-promoters-skip-buyback\/","title":{"rendered":"Infosys Stock Gains 4% After Promoters Opt Out of Share Buyback"},"content":{"rendered":"

Shares of Infosys<\/a> Ltd rallied nearly 4% on October 23, emerging as the top Nifty gainer, after the company confirmed that its promoter and promoter group would not participate in its \u20b918,000 crore share buyback announced in September. The strong rally in Infosys also helped the Nifty IT index climb 2.4%, making it the top-performing sectoral index of the day.<\/p>\n

At 10:05 a.m., Infosys shares were trading at \u20b91,533 apiece, up 4%, reflecting strong investor sentiment following the announcement.<\/p>\n

Promoters Hold 13.05% Stake, Choose Not to Participate<\/h2>\n

Infosys stated that its promoter group, which collectively holds 13.05% of the company\u2019s equity, had formally expressed their decision not to participate in the buyback through letters submitted between September 14 and September 19, 2025.<\/p>\n

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\u201cPursuant to the proposed buyback and depending on the response, the voting rights of the promoters and promoter group may change,\u201d Infosys said in its filing.<\/p>\n<\/blockquote>\n

The decision not to tender shares was made by key promoters, including founder N R Narayana Murthy, his wife Sudha Murty, and co-founder Nandan M. Nilekani along with their families. Other co-founders and their family members are also part of the promoter group.<\/p>\n

Market experts believe this move sends a positive signal.<\/p>\n

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\u201cThe promoters\u2019 decision to opt out of the buyback signals confidence in future prospects and improves the entitlement ratio for retail investors,\u201d said Saurabh Jain, Assistant Vice President of Retail Equities at SMC Global.<\/p>\n

Also Read<\/strong>: Global Funds Outperform Indian Equities<\/a><\/em><\/p>\n<\/blockquote>\n

Infosys\u2019 Largest-Ever Buyback Worth \u20b918,000 Crore<\/h3>\n

The Infosys board, in its September 11, 2025 meeting, approved the company\u2019s largest-ever buyback program, valued at \u20b918,000 crore.<\/p>\n

Under this buyback, Infosys plans to purchase 10 crore fully paid-up equity shares with a face value of \u20b95 each, representing 2.41% of the total paid-up share capital, at a price of \u20b91,800 per share.<\/p>\n

According to the company\u2019s filing, the buyback aims to return surplus cash to shareholders efficiently, keeping in mind strategic and operational cash needs in the medium term.<\/p>\n

Capital Allocation Policy and Shareholder Value<\/h3>\n

Infosys reiterated its Capital Allocation Policy, which aims to return around 85% of cumulative free cash flow over a five-year period, through semi-annual dividends, share buybacks, or special dividends, subject to necessary approvals.<\/p>\n

The company also stated that it intends to gradually increase its annual dividend per share, excluding any special dividends.<\/p>\n

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The buyback, Infosys said, is expected to enhance long-term shareholder value by reducing the equity base and efficiently utilizing excess cash reserves.<\/p>\n<\/blockquote>\n

A History of Consistent Buybacks<\/h3>\n

This marks Infosys\u2019 fifth share buyback since 2017.<\/p>\n