Published: Thu, August 17, 2017
Business | By Max Garcia

Infosys to consider share buyback on Saturday

Infosys to consider share buyback on Saturday

The board of Infosys Ltd, India's second largest software services firm, will meet on 19 August to consider up to Rs13,000-crore share buyback proposal.

Infosys that the board will consider a proposal to buy back shares at a meeting later this month.

The Infosys share buyback maybe priced at up to Rs 1,200 per share say industry analysts.

The company recently adopted new Articles of Association, making provision for buyback.

Analysts at IDBI Capital expect high probability for the buyback to be for Rs 9,750 crore, or 75 per cent of the total stated payout.

Infosys, however, didn't outline the details of the proposed share buyback in the regulatory intimation.

A share buyback is a process where a company repurchases its stock, reducing the number of shares of the company available in the market. It has been under a lot of pressure to distribute cash to shareholders.

The Securities and Exchange Board of India (Sebi) has approved Infosys' and also offered a solution for participation by holders of the company's American Depository Receipts (ADRs) and Global Depository Receipts (GDRs), the Business Standard reported.

In past one year, most of the information technology (IT) majors, include Tata Consultancy Services (TCS), Wipro, HCL Technologies, MindTree and MphasiS had announced through tender offer.

Earlier, embroiled in the controversy, the company's director, Kiran Mazumdar Shaw has told DH, "If we don't find the kind of merger and acquisition opportunities that we are looking at, obviously we would look at the buyback of the shares".

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