Infosys shares gained on Thursday after the company confirmed that its promoters and members of the promoter group would not participate in its ₹18,000 crore share buyback programme.
The news of promoter non-participation boosted investor sentiment, sending Infosys shares up by nearly 5 percent in early trade.
In a regulatory filing dated October 22, Infosys stated that co-founders N.R. Narayana Murthy, his wife Sudha Murty, and Chairman Nandan M. Nilekani were among those who chose to opt out of the buyback.
The buyback, approved by the board on September 11, 2025, allows Infosys to repurchase up to 10 crore fully paid equity shares of face value ₹5 each at a price of ₹1,800 per share.
The move represents approximately 2.41 percent of the company’s paid-up equity on a standalone basis.
The company said in its filing that the promoter and promoter group, who collectively held 13.05 percent of the company’s equity share capital at the time of announcement, had conveyed their decision between September 14 and 19 not to participate in the buyback.
As a result, their shareholding will not be included in the calculation of entitlement ratios for eligible shareholders tendering shares in the buyback.
Depending on the overall participation of other shareholders, the voting rights of the promoter group could marginally change after the completion of the programme.
Market analysts said the decision by the promoters to abstain from tendering shares reflects their confidence in the company’s long-term growth potential and financial resilience.
The ₹18,000 crore buyback is part of Infosys’s broader capital allocation policy aimed at optimizing its balance sheet and returning surplus cash to shareholders.
The company has previously committed to returning around 85 percent of its free cash flow to investors over a five-year period through dividends and buybacks.
Analysts noted that the decision aligns with Infosys’s track record of consistent shareholder returns and its focus on maintaining financial flexibility while supporting growth investments.
The market reaction underscored the perception that Infosys remains on strong financial footing despite global macroeconomic headwinds and ongoing challenges in the technology services sector.
While the company has yet to announce the record date for determining shareholder eligibility, market participants expect strong participation from institutional and retail investors given the attractive buyback price and Infosys’s solid fundamentals.
The decision by key promoters to hold on to their shares is seen as reinforcing trust in the company’s future earnings prospects and operational stability.
Overall, Infosys’s latest buyback programme and the promoters’ decision to abstain have strengthened investor confidence in the company’s capital discipline and growth outlook.
The development is viewed as a strategic signal that Infosys’s leadership remains committed to long-term value creation rather than short-term liquidity gains.
Also Read: Nifty 50 Crosses 26,000 Amid India-US Trade Optimism