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Infosys share price closes lower on closure of share buyback, recovery in rupee

BusinessToday.In     August 27, 2019

Infosys share price closed lower in trade today after the firm closed its Rs 8,260-crore buyback offer. The announcement was made after the Bengaluru-based IT firm utilised almost full size of the issue approved. The buyback started on March 20, 2019 at a price not exceeding Rs 800 per share.  Additionally, a rise in rupee put pressure on Infosys stock. The rupee opened 32 paise higher at 71.70 level against the US dollar today.

At 4:38 pm, the Indian currency was trading 51 paise higher at 71.51 level.

Infosys share price closed 2.23% or 17.90 points lower at Rs 785 compared to the previous close of Rs 802 level on BSE. Infosys share fell to an intra day low of Rs 781.20 on BSE.

The stock has fallen after two consecutive days of gain. However, the stock is 3.18% away from its 52-week high of Rs 809.95 on BSE.

26 of 37 brokerages rate the stock "buy" or 'outperform', five "hold" and six "underperform" or "sell", according to analysts' recommendations tracked by Reuters.

The firm said it has bought back 11.05 crore equity shares at an average price of Rs 747.38 per equity share.

"The company has bought back 110 million equity shares at an average price of Rs 747.38 per share; and deployed an amount of Rs 8,260 crore, utilising  99.99 per cent of the maximum buyback size till August 26, 2019," Infosys said in a regulatory filing on Monday after market hours.

Consequently, the buyback committee has approved the closure of the buyback with effect from August 26, 2019, prior to the expiry of six months from the commencement date, it added.

Edited by Aseem Thapliyal

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