Infosys stock closes lower amid Rs 13,000-crore share buyback

 BusinessToday.in        Last Updated: November 30, 2017  | 17:08 IST
Infosys stock closes lower amid Rs 13,000-crore share buyback

The stock of India's second-largest software services firm Infosys closed lower on Thursday after the firm commenced its Rs 13,000-crore share buyback programme.

The stock rose in early trade on Thursday.

The share buyback, is the first in the company's 36-year long history, and will see Infosys buying back over 11.30 crore shares at Rs 1,150 apiece.

At 11:36 am, the stock was trading 0.36 percent higher at 986.50 level in an otherwise weak market.

The stock is up 1.18 percent since the last one year. It's down 2.42 percent on an year-to-date basis on the BSE.

The stock closed 0.85% or 8 points lower to Rs 974.95 on the BSE.

"The Buyback Committee has approved and fixed November 1, 2017 to be the record date for determining the entitlement and the names of the equity shareholders to whom the letter of offer will be sent and will be eligible to participate in the buyback," Infosys said in a regulatory filing.

The buyback proposal was approved by the Infosys Board on August 19.

The buyback had been a long standing demand by some of the founders and high-profile former executives, who have been pushing Infosys to return surplus capital to its shareholders.

Earlier this year, its larger rival Tata Consultancy Services completed a Rs 16,000-crore mega buyback offer. Other competitors like Cognizant, Wipro and Mindtree had also made similar announcements.

Share buybacks typically improve earnings per share and return surplus cash to shareholders, while supporting share price during period of sluggish market condition.

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