Infosys Buyback 2025: Complete Details for Investors

Introduction to Infosys and Its Capital Return Policy

Infosys Limited is one of India’s biggest IT services and consulting companies. Headquartered in Bengaluru, the company has grown into a global brand since its start in 1981. Infosys works with clients across banking, insurance, healthcare, manufacturing, and retail. It offers services like digital transformation, AI solutions, cloud, and engineering.

With a market value of over $80 billion in 2025, Infosys has always been known for strong financial performance. Apart from growing revenues, the company is also known for rewarding its investors through dividends and share buybacks.

A share buyback means the company uses its cash to purchase its own shares from the market or directly from shareholders. When shares are repurchased, the total outstanding shares in the market go down. This can help improve earnings per share (EPS), return on equity (ROE), and sometimes even the stock price.

Infosys started using buybacks in 2017. Since then, it has become a regular part of its capital strategy. The Infosys Buyback 2025 is the company’s fifth buyback and also the largest so far. It highlights Infosys’s confidence in its future even when the IT sector is facing slow demand and uncertain global conditions.

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Infosys Buyback 2025: Key Announcement

On 11 September 2025, the board of Infosys approved a buyback program worth Rs 18,000 crore (around $2 billion). The buyback will be done through the tender offer method, where shareholders can submit their shares to the company at a fixed price.

• Buyback Price: Rs 1,800 per share
• Premium: About 19% higher than the stock’s closing price of Rs 1,512 on 11 September 2025
• Total Shares: Up to 100 million (10 crore) equity shares
• Share Value: Face value of Rs 5 each
• Buyback Percentage: Around 2.41% of the total shares of the company
• Funding: From Infosys’s cash reserves of Rs 24,500 crore as of June 30, 2025

The company has clarified that the buyback will be entirely funded by internal reserves, so it will not impact daily operations or growth investments.

Key Timelines

• Record Date: Yet to be announced. This date will decide which shareholders are eligible.
• Participation: Retail investors, institutional investors, and promoters can take part. Promoters may also choose not to participate.
• Execution: If more shareholders apply than the buyback size, the shares will be accepted proportionately.

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Infosys Buyback History

Infosys has conducted four buybacks before this one. Together, those programs added up to Rs 39,760 crore, with 339.7 million shares repurchased.

Here is a table summarizing all buybacks, including Infosys Buyback 2025:

Year	Size (Rs Crore)	Price per Share (Rs)	Shares Repurchased (Million)	Method	Stock Performance (6 Months After)
2017	13,000	1,150	113	Tender	+13%
2019	8,260	800	110.5	Open Market	Modest gains
2021	9,200	1,750	55.8	Tender	+22%
2022	9,300	1,850	50.3	Open Market	Weak performance
2025	18,000	1,800	Up to 100	Tender	To be seen

The Infosys Buyback 2025 is clearly the biggest one yet. It shows the company’s rising cash reserves and its focus on rewarding shareholders.

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Why Infosys Announced Buyback 2025

The Infosys Buyback 2025 has come at a time when its share price is down nearly 20% in 2025. Here are the key reasons for this move:

1. Falling Stock Price – Infosys shares have dropped because of lower IT spending in the US and Europe. Some large projects are also getting delayed.
2. Confidence in Future Growth – The management believes demand for digital, AI, and cloud will recover. The buyback is a way of showing confidence in the company’s long-term strength.
3. Strong Cash Position – As of June 2025, Infosys had Rs 24,500 crore in cash and equivalents. The buyback uses a part of this without hurting operations.
4. Shareholder Value – Fewer shares in the market will improve EPS and return on equity.
5. Tax Benefits – In India, buyback proceeds can be more tax-efficient than dividends for some investors.

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Infosys Financial Performance Before Buyback

The buyback is supported by healthy numbers. For the quarter ending June 30, 2025 (Q1 FY26):

• Revenue: Rs 39,315 crore (up 3.6% YoY)
• Net Profit: Rs 6,368 crore (up 7.1% YoY)
• Free Cash Flow: Rs 7,533 crore (down 17.7% YoY)
• Cash & Equivalents: Rs 24,500 crore

Even with slower growth, Infosys continues to generate strong cash flows, making the Infosys Buyback 2025 possible.

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Impact on Shareholders

The buyback affects different types of investors in different ways:

• Retail Investors (holding shares worth up to Rs 2 lakh): A 15% quota is reserved for them. This increases their chances of acceptance.
• Institutional Investors: Large funds can also participate but on a proportionate basis.
• Promoters: They may or may not tender shares. If they don’t, their ownership percentage will increase.

Possible Benefits

• Short-Term Gains: If you bought Infosys shares below Rs 1,800, tendering them could give instant profit.
• Long-Term Value: After the buyback, EPS may rise by 2–3%. This could support share prices in the long run.

Possible Risks

• If the stock rises above Rs 1,800 later, those who sold may miss out on gains.
• The global IT slowdown may continue, which can keep the stock under pressure despite the buyback.

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Analyst Opinions on Infosys Buyback 2025

Brokerage houses and analysts have reacted positively.

• Motilal Oswal & ICICI Securities: They believe the buyback will boost investor sentiment and support the stock in the Rs 1,450–1,470 range.
• Morgan Stanley: Maintains an “Overweight” rating, expecting the buyback to act as a trigger for undervalued shares.
• Caution: Some analysts warn that weak IT demand may limit medium-term upside.

Consensus is that the Infosys Buyback 2025 is a good move, but it cannot fully remove the pressure from slowing global demand.

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How Shareholders Can Participate

The process for Infosys Buyback 2025 will be simple once approvals come through:

1. Company Announcement – Infosys Board approves and SEBI, NSE, and BSE give clearance.
2. Record Date – Infosys will announce the date to decide eligible shareholders.
3. Letter of Offer – Sent to all eligible shareholders with details.
4. Tendering Shares – Shareholders can submit their shares through brokers during the buyback window (10–15 days).
5. Settlement – Shares are accepted, and payment is made within 7 days.

Tax Rules

• For Indian residents, capital gains tax applies depending on holding period.
• For non-residents, Infosys will deduct tax at source as per law.

It’s always better for investors to check with their financial advisors before taking part.

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What It Means for the Market

The Infosys Buyback 2025 also has a bigger market angle. Indian IT companies like TCS and Wipro have also used buybacks to return cash. This shows the sector is trying to support investor confidence during global demand uncertainty.

For Infosys, the buyback may act as a floor price for the stock. It can also push competitors to consider similar steps.

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FAQs on Infosys Buyback 2025

1. What is the buyback price for Infosys Buyback 2025?

The price is Rs 1,800 per share.

2. How many shares will Infosys buy back in 2025?

Up to 100 million shares, which is about 2.41% of total equity.

3. Who can take part in Infosys Buyback 2025?

All shareholders on the record date can participate, including retail, institutional, and promoters.

4. What is the record date for Infosys Buyback 2025?

The company will announce it soon.

5. Is Infosys Buyback 2025 good for investors?

It can provide short-term profits for those holding below Rs 1,800 and may improve long-term value through higher EPS.

The Infosys Buyback 2025 is a big step by the company to reward shareholders at a time when the IT sector is struggling. With Rs 18,000 crore set aside, it is the largest buyback in Infosys’s history.

For investors, it brings both opportunities and risks. Those looking for quick gains may benefit by tendering shares. Long-term holders may see improved EPS and stock support.

Overall, the buyback highlights Infosys’s strong balance sheet, commitment to investors, and confidence in its future growth.

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