Infosys To Consider Buyback On Saturday, Shares Surge

Infosys To Consider Buyback On Saturday, Shares Surge

The Infosys share buyback maybe priced at up to Rs 1,200 per share say industry analysts.

The board of directors of the company are slated to take a call on the proposal of the buyback of the shares on August 19, 2017.

The board of Infosys Ltd, India's second largest software services firm, will meet on 19 August to consider up to Rs13,000-crore share buyback proposal.

The outcome of the Board will be notified to the stock exchanges (BSE and NSE) on the same day.

In the recent past, other big IT outsourcers have also announced share buybacks.

Infosys, however, didn't outline the details of the proposed share buyback in the regulatory intimation.

The trading window for dealing in securities of the Company for all Director (s) and designated person (s) of the Company will remain closed from 7th September, 2017 to 13th September, 2017 (Both days inclusive).

A share buyback is repurchase of its outstanding shares that reduces the number of shares in the open market.

Infosys, during the company's 36th annual general meeting in June, had said it was in the process of finalising a suitable "distribution mechanism" for its Rs13,000-crore capital allocation plan. It has been under a lot of pressure to distribute cash to shareholders.

In case the buyback is approved, the "offer to sell" for shareholders will be made through Tender Offer Documents.

Earlier, the larger rival TCS (Tata Consultancy Services) had announced a buyback at an attractive premium of 12.2 per cent. Sharma believes that post buyback, the company may resort to inorganic acquisitions to utilise the excess cash.



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