Infosys Shares Rally as Board Set to Consider Share Buyback on September 11
Stock Gains Nearly 4% Ahead of Key Board Meeting
Shares of Infosys Ltd rose nearly 4% on Tuesday, hitting an intraday high of ₹1,473, ahead of a crucial board meeting scheduled for September 11 to consider a share buyback proposal. Investor sentiment turned positive as buybacks are typically seen as a sign of confidence and a way to return excess cash to shareholders.
If approved, this would be Infosys’ fifth share buyback since 2017. The company last repurchased shares worth ₹9,300 crore in 2022 at ₹1,850 per share. With a strong cash reserve of over ₹23,000 crore, Infosys is well-positioned to execute another sizable buyback.
The board will deliberate on the structure and terms of the buyback, which may be done via a tender offer or open market route. Analysts expect a potential buyback size of ₹9,000–₹12,000 crore, though official details will follow after the meeting.
Infosys shares have fallen nearly 25% over the past year, underperforming the broader market and the Nifty IT index. The anticipated buyback is seen as a strategy to boost earnings per share and stabilize investor confidence, especially amid global IT spending slowdowns.
Despite the recent correction, Infosys reported a 9% YoY rise in net profit and an 8% growth in revenue in the latest quarter, signaling operational resilience.
The buyback news also lifted other IT stocks. The Nifty IT index gained over 1.5%, with peers like TCS, Wipro, and HCL Tech also trading higher.
The outcome of the September 11 board meeting will be closely watched by investors. A generous buyback price could provide further upside for Infosys shares and set the tone for broader IT sector performance in the upcoming earnings season.