Infosys has kicked off its largest-ever share buyback, worth ₹18,000 crore, starting today (20 November) and running until 26 November. The company will repurchase up to 10 crore shares at ₹1,800 apiece, which equals roughly 2.41% of its paid-up equity capital.
Only shareholders who held Infosys shares on 14 November — the record date — are eligible to tender. A 15% reservation is set aside for small shareholders, improving their chance of participation. Notably, promoters are staying out of the buyback, which may raise the acceptance ratio for public investors.
From a tax perspective, the full buyback proceeds will be treated as deemed dividend, meaning it’ll be taxed at the investor’s income slab rate. This could reduce the net benefit for higher-income shareholders, while those in lower tax brackets may find the tender route more attractive.
Infosys is funding this buyback entirely from its reserves, showing strong cash generation. For long-term holders who skip the buyback, fewer shares may help improve earnings per share (EPS) and return on equity (ROE).
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