Infosys to consider share buyback proposal

Infosys said that the board would consider a buyback of shares this week. This is the fourth buyback announced by the company in its history. As of June end, the company’s cash and equivalents were at Rs 13,982 crores.

The first was a tender offer announced in 2017, when the company bought back shares worth Rs 13,000 crore at Rs 1,150 per share. The second buyback was conducted in 2019, when the company bought back shares worth Rs 8,260 crore at an average price of Rs 747 per share. The third was in 2021, when it bought back shares worth Rs 9,200 crores through the open market.

Under a share buyback or repurchase, a company buys back its own shares from investors or shareholders. It is seen as an alternative, tax-efficient way to return money to shareholders.

For the financial year FY22, Infosys paid a 620% equity dividend to its shareholders aggregating to Rs 31 per share. For this financial year, the first interim dividend of Rs 15 per share was announced on 13 October, 2021, while the final dividend of Rs 16 per share was declared on 13 April, 2022.