The Infosys stock rose in early trade today amid a report that the IT firm may consider a proposal for a second share buyback of $1.60 billion very soon. The Infosys stock rose up to 2.025 to 658.80 on the BSE.
The large cap stock opened at 658 level compared to the previuos close of 645.75 on the BSE. The stock has gained 25.96% during the last one year and risen 25.85% since the beginning of this year.
36 of 44 brokerages rate the stock "buy" or 'outperform', six "hold", one "underperform" and one "sell", according to analysts' recommendations tracked by Reuters.
The stock is trading below the 50 day and 200 day moving average of 662.65 and 678.96.
The buyback announcement is likely to be made on January 11 when the board of the company meets on January 11 to consider the audited quarterly results, according to a report by The Times of India.
The buyback would be announced at a 20% to 25% premium at the current market price, the report adds.
In November 2017, the Bengaluru-based firm announced first ever share buyback in the 36-year long history where the IT firm bought more than 11.30 crore shares for a price of Rs 1,150 apiece.
Infosys spent around Rs 13,000 crore to buy back a total of 11,30,43,478 equity shares of a face value of Rs 5 from registered shareholders as on November 1, 2017.
The Infosys buyback offer opened on November 30 and continued till December 14 last year.
Edited by Aseem Thapliyal