The Infosys stock rose in early trade after the country's second-largest IT services firm said its board would consider a buyback programme and payment of special dividend, among other proposals, at its meeting on January 11. The large cap stock was the top gainer on both Sensex and Nifty.
The stock rose up to 2.81% in opening trade to 688.70 compared to the previous close of 669.85 on the BSE.
The stock opened with a gain of 2.25% of 684.90 on the BSE. On Nifty, the stock rose 2.22% to 684.95. The stock logged turnover of Rs 15.43 crore with 2,26,426 shares changing hands in 3,627 trades on the BSE. The stock rose 31.37% during the last one year.
37 of 44 brokerages rate the stock "buy" or 'outperform', five "hold", one "underperform" and one "sell", according to analysts' recommendations tracked by Reuters.
The stock is trading above its 50-day and 200 day moving average of 662.04 and 681.76, respectively.
"...the board of the company will consider proposal(s), including but not limited to, buyback of fully paid-up equity shares of the company, payment of special dividend, for implementation of the capital allocation policy at its meeting to be held on January 11, 2019," Infosys said.
The outcome of the board meeting will be disseminated to the stock exchanges after conclusion of the board meeting on January 11, 2019, it added.
The Bengaluru-based company is also slated to announce its third quarter results on January 11.
In April last year, Infosys board had said it had identified an amount of up to Rs 13,000 crore to be paid to shareholders. This was done through a special dividend of Rs 10 per share that was to result in a payout of about Rs 2,600 crore in June 2018.
"Also, an amount of up to Rs 10,400 crore has been identified to be paid out to shareholders for the financial year 2019 in a manner to be decided by the board," it had said in its April 2018 filing.
The company had also stated that the board had decided to retain its policy of returning up to 70 per cent of the free cash flow of the corresponding financial year to shareholders.
Edited by Aseem Thapliyal