Infosys announces buyback of shares up to Rs 9,200 cr
IT services major Infosys on Wednesday said its board has approved a buyback of shares worth Rs 9,200 crore at a maximum price of Rs 1,750 apiece as part of its capital allocation policy.
FM’s meeting with Salil Parekh of Infosys postponed for Thursday
Bengaluru: IT services major Infosys on Wednesday said its board has approved a buyback of shares worth Rs 9,200 crore at a maximum price of Rs 1,750 apiece as part of its capital allocation policy.
The buyback price is around 25 per cent premium to the current market price of Rs 1,402 per share. The buyback plan of Rs 9,200 crore is less than 15 per cent of its total paid-up share capital, it said.
Current buyback of shares will be conducted through open market, enabling the promoters of the company to participate on this share repurchase programme.
"Executing on our capital allocation policy, the company proposes to increase the total dividend per share by 54 per cent over previous year and buyback of equity shares of up to Rs 9,200 crore", said Nilanjan Roy, CFO at Infosys.
This is the third such share repurchase programme of the company in the last five years. In 2017, it had conducted a Rs 13,000 crore buyback at Rs 1,150 apiece. Similarly, Rs 8,260 crore worth shares were repurchased from shareholders at Rs 800 apiece in 2019.
Apart from buyback, it also announced a final dividend of Rs 15 per share. With this dividend payout, the IT firm would give out a total dividend worth Rs 11,500 crore for the last financial year.
Infosys also said its board has approved a stock options worth Rs 13 crore for 2021-22 under its stock incentive plan, 2015 to its CEO & MD, Salil Parekh. Similarly, Rs 10 crore worth performance-based stock options will also be granted to Parekh under company's 2019 stock incentive plan.
