Indian IT giant Infosys has launched its largest-ever share buyback program worth ₹18,000 crore, creating significant opportunities for eligible shareholders. The massive repurchase initiative offers a substantial premium over current market prices and reflects the company's strong financial health.
Essential Buyback Details and Timeline
The buyback program commenced on November 20, 2025 and will remain open until November 26, 2025, giving shareholders a limited window to participate. Investors who held Infosys shares as of November 14, 2025 - the record date - are eligible to tender their shares in this offer.
The company has fixed the buyback price at ₹1,800 per share, representing a significant premium compared to the recent closing price of approximately ₹1,544 on the National Stock Exchange. This translates to an immediate gain opportunity of over 16% for participating shareholders.
Expert Analysis and Market Impact
Seema Srivastava, Senior Research Analyst at SMC Global Securities, emphasized the scale of this buyback. "Infosys' ₹18,000-crore buyback, the largest ever undertaken by the company, offers a tender price of ₹1,800 per share, which represents a significant 18–19% premium over the pre-announcement market price," she stated.
The buyback involves 10 crore shares, accounting for 2.41% of Infosys' total paid-up capital. According to Srivastava, this move "reflects its robust cash position, steady free-cash-flow generation, and continued confidence in the long-term growth outlook of its digital and cloud-led services business."
Acceptance Ratios and Retail Investor Benefits
Market experts project varying acceptance ratios that could benefit retail investors. "The tender-offer route ensures equitable participation," explained Srivastava, detailing that "for retail shareholders, approximately two shares for every 11 held (actual entitlement factor 18.17%), and for the general category, 17 shares for every 706 held (actual factor 2.41%)."
The retail acceptance ratio is expected to be around 18%, with potential to rise to 35-40% if retail participation remains moderate. This creates an advantageous position for smaller investors considering tendering their shares.
Anuj Gupta, Director at Ya Wealth, highlighted the strategic benefits of buybacks. "Buyback of shares is a way for companies to return excess cash to shareholders and reduce the number of shares outstanding. When fewer shares are outstanding, EPS typically increases, which can help boost the stock price in the medium term."
Should You Participate? Expert Recommendations
For retail investors holding equity up to ₹2 lakh, the buyback presents an attractive opportunity. "The spread between the CMP of ₹1544 and the buyback price offers instant value realization without the need for long-term upside capture," noted Srivastava.
The tax efficiency of buybacks adds to their appeal, as shareholders don't pay capital gains tax since the company bears the buyback tax under Section 115QA. However, long-term investors might consider holding their shares, as the reduction in share count enhances EPS, improves return ratios, and increases ownership percentage over time.
The finalization of buyback acceptance is scheduled for December 2, 2025, with the last date for share extinguishment set for December 12, 2025. Investors should carefully weigh immediate gains against long-term conviction and expected acceptance ratios before making their participation decision.
