Infosys ₹18,000 Crore Buyback Opens

The much-awaited Infosys share buyback worth ₹18,000 crore has officially opened on November 20, 2025, and will remain open until November 26, 2025. This is the largest buyback in Infosys’ history, surpassing the previous ₹9,300 crore buyback announced in 2022.
👉 Know more about Infosys on its official website: Infosys Investor Relations

The company has fixed the buyback price at ₹1,800 per share, offering a significant premium over its current market levels. As of 9:55 AM on November 20, Infosys shares were trading around ₹1,544.

Buyback Categories: Reserved vs General

Infosys has split the buyback into two distinct categories:

1. Reserved Category – Small Shareholders

15% of the total buyback size is reserved.
A small shareholder is defined as someone holding shares worth ₹2 lakh or less as on the record date.
Infosys has 25,85,684 small shareholders eligible for this buyback.
Record date: November 14
Entitlement Ratio (Reserved): 2 shares for every 11 shares held (2:11)

2. General Category

Entitlement Ratio (General): 17 shares for every 706 shares held

💡 Entitlement represents the minimum number of shares a shareholder can tender, based on their holding on the record date.

Why This Buyback Could Benefit Retail Investors

One of the biggest positives for retail investors is that Infosys promoters have decided not to participate in the buyback.

Promoter Shareholding (as of September 30, 2025)

Promoters + Promoter Group: 14.30%
Public Shareholding: 85.46%

Key Promoter Holdings

Nandan Nilekani: 1.08%
NR Narayana Murthy: 0.40%
Sudha Murthy: 0.91%
Rohan Murthy: 1.60%
Akshata Murthy: 1.03%

Why this matters

Higher acceptance ratio: Since promoters are not tendering shares, the acceptance ratio for retail investors is expected to be higher.
Signals management confidence: Promoters staying invested reflects belief in the company’s long-term growth.
Better realized gains: With fewer tendering participants, retail investors stand to gain more at the premium buyback price.

Expert Views:

“Promoters opting out improves the effective realized upside for public shareholders,” says Abhinav Tiwari (Bonanza).
“Non-participation indicates strong confidence in future prospects,” adds Saurabh Jain (SMC Global).

Tax Considerations: Crucial for Investor Decision-Making

Since October 2024, buyback proceeds are treated as ‘deemed dividend’ and are taxable in the investor’s hands.

Impact by Tax Bracket

High tax bracket (30%+) investors:
Gains reduce sharply; selling shares directly in the market near ₹1,800 may be more tax-efficient.
Low-tax or tax-exempt investors:
The tender route is beneficial due to higher acceptance ratio and premium.

Ajit Mishra of Religare Broking notes:
“The buyback is attractive mainly for lower-tax investors. For others, the tax outflow may offset the gains.”

Infosys Fundamentals: Stable but Not Aggressive

Deal wins remain steady but not aggressive.
Margins have stabilized but lack strong expansion.
The buyback will reduce share count, enhancing EPS and ROE.
Good for long-term investors even if they choose not to tender.

Infosys is funding the buyback entirely through internal cash reserves, highlighting its strong balance sheet and consistent free cash flow.

A share buyback is when a company repurchases its own shares to:

Improve shareholder value
Reduce equity base
Enhance return ratios such as EPS and ROE
Return surplus capital to investors

Infosys is buying back 10 crore equity shares, representing 2.41% of its total equity capital.

This buyback offers a ~19% premium, based on the stock price when the buyback was announced in September.

📌 Learn more about buybacks here:
SEBI – Buyback Regulations

Conclusion: Should Retail Investors Tender?

Retail (small) shareholders stand to benefit the most due to:
✔ Higher entitlement ratio
✔ Higher acceptance due to promoter non-participation
✔ Attractive premium over current market price

However, investors in higher tax brackets must weigh tax impact before proceeding.