Do you own this blue-chip IT stock? Get ready for a bonanza


by 5paisa Research Team Last Updated: Dec 15, 2022 - 03:08 pm 13.4k Views
Listen icon

If you are an Infosys shareholder, you may soon have a reason to rejoice.

The software services company on Monday said that its board of directors would consider a buyback of shares on Thursday, when it announces the earnings for the quarter ended September 30.

While there is no clarity on the price at which Infosys will buy the shares back, the price would most likely be above the prevailing market price.

But why is Infosys buying shares back?

As of June end, the company's cash and equivalents were at Rs 13,982 crore and it does not have too many avenues to deploy this money. Hence, it is rewarding its shareholders with a buyback. 

When was the last time Infosys bought shares back?

The software major conducted a share buyback of shares in September 2021 and bought back shares worth Rs 9,200 crore through the open market.

But how has the counter performed so far this year?

On a year-to-date basis, shares of Infosys have lagged behind Nifty50. The stock has fallen over 15 per cent, whereas the Nifty50 has lost just 3 per cent. Also, the shares are down almost 25% from the one-year high touched in mid-January.

Does the market still need some important details about the buyback apart from the price itself?

Yes. Dalal Street would be keen to know if the mode of buyback will be open market or the tender offer route.

How do you rate this blog?


Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage


About the Author

Our research team is composed of some highly qualified research professionals, their expertise range across sectors.

Open Free Demat Account
Resend OTP
Please Enter OTP
Mobile No. belongs to

By proceeding, you agree to the T&C.

Latest Blogs
Weekly Outlook on Copper - 01 December 2023

Copper prices saw a modest 0.33% gain, reaching 722 on Thursday, as worries about a slowdown in Chinese manufacturing loomed large. The November's NBS Manufacturing PMI slipped to 49.4, the second consecutive monthly decline, heightened concerns, emphasizing the need for additional government support to fortify China's economic growth. The NBS Non-Manufacturing PMI at 50.2, reflecting the 11th month of service sector expansion, hinted at a softer pace.

Swing Trading Stocks: Week of 04 December 2023

Swing Trading Stocks for the Week

Weekly Market Outlook for 04 December to 08 December

Our markets started the truncated week on a positive note and it rallied higher throughout the week. The first day of the December month infact witnessed a new record as the Nifty surpassed its previous high and ended in uncharted territory above 20250 with weekly gains of almost two and a half percent.