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Infosys shares gained over 2% in early trade on Friday, September 12, after the IT major unveiled its biggest-ever share buyback programme worth Rs 18,000 crore. The Bengaluru-based technology services firm will repurchase up to 10 crore fully paid-up equity shares, representing about 2.41% of its equity capital, at a fixed price of Rs 1,800 per share.
The buyback price offers a nearly 19% premium to Infosys’s Thursday closing level of Rs 1,509.50 on the BSE. On Friday, the stock climbed as much as 2.32% to Rs 1,544.65, before settling at Rs 1,530, still up 1.32%.
Unlike the company’s last three buybacks, which were conducted through the open market route, the latest programme will use the tender offer mechanism. Under this route, shareholders can tender their shares at the fixed buyback price.
Infosys has also secured relief from the SEC to address conflicting regulatory requirements between Indian and US laws on tender offer procedures.
This is Infosys’s fifth share buyback since it first initiated the practice in 2017 and its largest to date, surpassing the Rs 9,300-crore repurchase in 2022. The board has also formed a dedicated committee to oversee execution, though the record date for the buyback is yet to be announced.
Infosys reported free cash flow of $884 million (Rs 7,805 crore) in the June 2025 quarter, ensuring it has sufficient liquidity to fund the programme.
While the stock has delivered 7.6% gains in the past month, it remains under pressure over the medium term, down 5% in the last three months and 19% year-to-date.
Infosys has fallen 21% over the past year, but has experienced a 62% gain over the past five years, which shows long-term durability, despite short-term volatility.
Infosys ADRs listed in the US were up 0.5% overnight, keeping the optimism following the buyback news.
Jefferies reaffirmed a Buy recommendation on Infosys but reduced its target price to Rs 1,750 from Rs 1,860, cautioning that rapid adoption of artificial intelligence (AI) could result in 20% revenue deflation in IT services between 2025 and 2030.
Morgan Stanley gave an Equal Weight rating with a target of Rs 1,700, considering the buyback to be a significant vote of confidence but noting that it could take 3-4 months for execution.
Also Read: Infosys Shares Surge Ahead of Buyback Decision, 7% Rally in 2 Sessions
The buyback strengthens Infosys's confidence in its financial strength and ability to reward shareholders amid growing global macroeconomic uncertainties. Analysts expect this move to provide the stock with short-term support, while long-term strength will depend on how Infosys copes with the AI-led disruption and maintains growth in each of its core businesses.
