Infosys Ltd. has announced a buyback plan with the Board approving the proposal worth Rs 9,200 crore. The company also announced the earnings for the quarter ending in March and fiscal year 2021. Infosys in a regulatory filing said that shares will be bought back via the open market route through the stock exchanges.
The buyback will be done at a price of up to Rs 1,750 per share through the open market route. The Bengaluru-based company had enhanced its capital allocation plan from FY20 and said it will return 85 per cent of free cash flow cumulatively over five years via buyback and dividends.
This is the third buyback announced by the company in its history. The first was a tender offer announced in 2017 when the company bought back shares worth Rs 13,000 crore at Rs 1,150 per share. The second buyback was conducted in 2019 when the company bought back shares worth Rs 8,260 crore at an average price of Rs 747 per share.
The Board has constituted a buyback committee comprising Chief Operating Officer UB Pravin Rao, Chief Financial Officer Nilanjan Roy, Deputy Chief Financial Officer, General Counsel and Company Secretary.
The buyback is subject to the approval of the members of the company by way of a special resolution and all other applicable statutory/regulatory approvals. The public announcement setting out the process, timelines and other statutory details of the buyback will be released in due course.
Shares of Infosys ended 2% lower on Tuesday, Apr. 13 at Rs 1,397.1. That compares with the 1.4% gain seen on the Nifty 50 index. The stock fell for the second straight day. Wednesday is a trading holiday in India.