Infosys Mega Buyback: A Final Call for Investors
India's IT giant Infosys has set the stage for its largest-ever share buyback, creating a crucial deadline for investors this week. The record date for this monumental ₹18,000 crore offer is Friday, November 14, 2025. This means shareholders must possess Infosys stock on or before this date to be eligible. Under the T+1 settlement cycle, the final day to purchase shares and qualify is Thursday, November 13, 2025.
Key Details of the Infosys Buyback Offer
The company is executing this buyback through the tender offer route, setting a lucrative price of ₹1,800 per share. This represents a significant premium of over 18% compared to Monday's closing price of ₹1,514.60 on the BSE. Infosys plans to repurchase up to 10 crore equity shares, which accounts for 2.41% of its total paid-up equity capital. A notable feature is the 15% reservation for small investors, ensuring a fair opportunity for retail participation.
This buyback marks a major event as it is the company's first in three years and its most substantial to date. It arrives at a time when the Infosys stock has faced pressure, declining approximately 25% from its recent peaks amid sector-wide challenges. In a significant development, promoters including Nandan M. Nilekani and Sudha Murthy have confirmed they will not participate in this buyback.
Should Retail Investors Participate? Analysts Weigh In
The decision for retail investors is nuanced, heavily influenced by new tax regulations. Since October 2024, the entire buyback proceeds are taxed as a "deemed dividend" under the investor's income tax slab, which can be as high as 30%. This is a critical shift from the previous tax-exempt status.
Santosh Meena, Head of Research at Swastika Investmart, highlights that for high-income earners, the post-tax gain might be less attractive than selling in the open market and paying the standard 10% Long-Term Capital Gains tax. "Tax efficiency must override the premium appeal for higher-slab investors," he advises.
However, for small shareholders holding shares worth up to ₹2 lakh, the outlook is more positive. The 15% reservation for this category, combined with the promoters' non-participation, historically leads to higher acceptance ratios. "This scenario creates a strong short-term opportunity to sell a portion of one's holding at a guaranteed premium," Meena opines.
Other experts offer a balanced view. Vinod Nair, Head of Research at Geojit Investments, sees limited short-term opportunity due to the low acceptance ratio amidst a high retail investor base. Conversely, Harshal Dasani of INVAsset PMS believes that for long-term investors, holding the stock may yield better compounding benefits, while short-term investors could consider partial participation.
Infosys Stock and Sector Outlook
The broader IT sector faces headwinds from global economic uncertainty and tighter client budgets in key markets like the US and Europe. This has led to moderated near-term growth guidance for IT firms. Despite this, long-term prospects remain positive, driven by digital transformation, AI integration, and cloud adoption.
Infosys has demonstrated resilience with a 2.9% YoY constant currency growth in a subdued environment. With valuations hovering around historical averages, the stock appears attractive for investors with a long-term horizon, according to analysts.
