Infosys stock in focus as Narayana Murthy, promoters skip Rs 18,000 crore share buyback

Shares of Infosys Ltd are in focus on Thursday after the IT major informed stock exchanges that its promoter and promoter group, including founders Narayana Murthy, Sudha Murty, Nandan Nilekani, and others, have decided not to participate in the company’s Rs 18,000 crore share buyback programme.

In a filing to the stock exchanges, dated October 22, Infosys said the buyback proposal involves the repurchase of up to 10 crore fully paid-up equity shares of face value Rs 5 each, representing up to 2.41 per cent of the company’s total paid-up equity share capital on a standalone basis. The buyback will be executed at a price of Rs 1,800 per share, payable in cash.

Infosys clarified that a draft version of the Letter of Offer has been filed with the U.S. Securities and Exchange Commission (SEC) for regulatory purposes. The company emphasised that this version is only for informational purposes and does not constitute an offer or solicitation to participate in the buyback. “Any decision by a shareholder to participate in the buyback, if and when launched, must be made solely on the basis of the final letter of offer and other definitive documents,” Infosys said in the exchange filing
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The Bengaluru-headquartered IT firm noted that the buyback will be conducted via the tender offer route through Indian stock exchanges and will comply with the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018 and relevant provisions of the Companies Act, 2013.

The company stated that the buyback size represents 24.31 per cent and 21.68 per cent of the aggregate of total paid-up share capital and free reserves of Infosys on a standalone and consolidated basis, respectively, as of June 30, 2025, well within the statutory limit of 25 per cent.

The move comes after Infosys’ board, at its meeting on September 11, 2025, approved the proposal for the buyback, subject to shareholder approval via a special resolution. The record date for determining shareholder entitlement will be announced later.

With the promoter group abstaining from the buyback, the programme is expected to benefit retail and institutional investors, improving earnings per share and providing a partial exit at a premium to the current market price.