Infosys, one of India’s most respected IT companies, has once again caught the attention of markets and investors with a major announcement. On September 11, 2025, the board of the Bengaluru-headquartered firm approved the largest-ever Infosys share buyback, valued at a staggering ₹18,000 crore.
The move has been widely discussed among analysts, shareholders, and industry experts, not only because of the size of the buyback but also because of what it signals about Infosys’s long-term strategy. Let’s explore the details of the buyback, its significance, the company’s history of similar programmes, and what this could mean for the broader IT sector.
Understanding the Buyback
In simple terms, a share buyback takes place when a company repurchases its own shares from the open market. The result is a smaller pool of outstanding shares, which often boosts earnings per share (EPS) and increases the perceived value of the company’s stock.
The latest Infosys share buyback involves the repurchase of 10 crore fully paid-up equity shares, each having a face value of ₹5. These shares represent 2.41% of Infosys’s total equity capital. The buyback price has been set at ₹1,800 per share, which is nearly 19% higher than the closing price of Infosys stock on the Bombay Stock Exchange (BSE) on the day of the announcement.
This premium is crucial. It shows that Infosys believes its stock is currently undervalued and is willing to pay shareholders above the market rate to consolidate its ownership structure.
Key Details of the Infosys Share Buyback
- Total Value: ₹18,000 crore
- Number of Shares: 10 crore equity shares
- Face Value: ₹5 per share
- Buyback Price: ₹1,800 per share
- Equity Reduction: Around 2.41% of the total shareholding
At the end of the June 2025 quarter, Infosys reported a free cash flow of $884 million (approximately ₹7,805 crore), indicating that the company has the financial strength to support this massive repurchase.
Market Reaction to the Announcement
Despite the significant buyback announcement, Infosys’s stock price did not see an immediate rally. On the day of the news, shares closed at ₹1,509.50 on the BSE, down 1.51%. On the NSE, the stock ended at ₹1,512.20, a decline of 1.33%.
Market watchers explain this by pointing out that share buybacks usually deliver benefits in the medium to long term, rather than in immediate trading sessions. Investors often look beyond the initial announcement to the execution and eventual impact on financial ratios such as EPS, return on equity (ROE), and overall profitability.
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A Look Back: Infosys’s Buyback History
Infosys has made buybacks a recurring strategy over the past decade. Each one has reflected a mix of strong financial performance and commitment to shareholder returns.
2017: The First Major Step
The company conducted its very first buyback in 2017, worth ₹13,000 crore. The tender offer was priced at ₹1,150 per share, enabling Infosys to repurchase approximately 11.3 crore shares.
2019: Continuing the Strategy
In 2019, Infosys carried out its second buyback, valued at ₹8,260 crore. By then, it had become clear that buybacks were part of the company’s broader financial management policy.
2021: Riding the Digital Boom
Amid a global surge in demand for IT services and digital transformation, Infosys announced a buyback worth ₹9,200 crore. This one had a maximum price of ₹1,750 per share.
2022: Fourth Buyback
The company’s fourth repurchase programme came in 2022, worth ₹9,300 crore, executed at ₹1,850 per share.
With the latest ₹18,000 crore Infosys share buyback in 2025, the company has now doubled down on this approach, creating its largest programme to date.
Why This Buyback Matters
Several factors make this programme stand out:
- Record Size – At ₹18,000 crore, it is the most ambitious Infosys buyback in the company’s history.
- Premium Pricing – The offer price of ₹1,800 per share reflects optimism about the stock’s future performance.
- Enhanced Shareholder Value – Fewer outstanding shares will likely lead to higher earnings per share.
- Signal of Strength – The company is showing that it has enough free cash and financial confidence to reward shareholders.
- Market Benchmark – Such a large buyback sets the tone for other Indian IT firms considering similar moves.
What Analysts Are Saying
Market experts see the buyback as a strong indicator of Infosys’s belief in its growth prospects. Many analysts have highlighted three main takeaways:
- Confidence in Fundamentals: The scale of the buyback shows that Infosys expects stable cash flows and profitability in the coming years.
- Sector-Wide Impact: A move of this size could boost overall sentiment for the Indian IT sector, where global demand has been uncertain.
- Long-Term Value: While immediate stock movements have been muted, the buyback is expected to deliver steady gains over time.
Infosys’s New Strategic Alliance
Interestingly, the buyback announcement coincided with another major update from Infosys. The company revealed a 10-year strategic partnership with HanesBrands Inc., a leading name in global apparel.
Details of the Alliance
- Infosys will modernise HanesBrands’ digital business applications and data systems.
- The company plans to use its Live Enterprise Automation Platform (LEAP), integrated into the Infosys Topaz AI-first suite.
- The focus will be on deploying generative AI and AIOps technologies to simplify IT operations and improve agility.
This partnership not only diversifies Infosys’s client portfolio but also highlights its emphasis on AI-driven solutions, a crucial area for global IT firms today.
Impact on Investors
For shareholders, the Infosys share buyback offers both immediate and long-term benefits.
- Immediate Gain: Shareholders participating in the tender offer stand to earn a premium of nearly 19% over the market price.
- Long-Term Benefit: As the total number of shares reduces, investors who continue to hold will likely see higher earnings per share.
- Confidence Boost: The buyback reflects Infosys’s strong balance sheet and commitment to financial discipline.
Wider Impact on the IT Sector
The programme also has broader implications. With Infosys setting the benchmark for large-scale repurchases, other Indian IT firms may consider similar initiatives to boost investor confidence. Moreover, in a global environment where tech spending has been volatile, Infosys’s buyback provides a vote of confidence in the resilience of the sector.
Challenges to Keep in Mind
Of course, no corporate action is without risks. Even as Infosys embarks on this record buyback, there are some challenges ahead:
- Global Uncertainty – With ongoing concerns about economic slowdown in major markets, IT spending may remain unpredictable.
- Investor Expectations – Following such a large buyback, shareholders may expect consistently high returns, putting pressure on performance.
- Currency and Geopolitical Risks – As a global IT exporter, Infosys is vulnerable to currency fluctuations and international disruptions.
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