Infosys Will Buyback Shares Worth Rs 9300 Crore At This Price; Seeks Shareholders’ Approval
On October 13, the Infosys board had announced a share buyback of Rs 9,300 crore via the open market route.
Infosys Share Buyback
The buyback would be for a price not exceeding Rs 1,850 per equity share.
Further, Infosys said in a regulatory filing that it will seek shareholders’ nod for its proposed Rs 9,300 crore share buyback between November 3 to December 2 through postal ballot.
Further adding,”…the Company is required to obtain the approval of its Members for the Buyback by way of a special resolution through Postal Ballot or at a general meeting by providing the facility to Members to vote by electronic means. Accordingly, the Company seeks your approval for the Buyback through this Postal Ballot Notice,”.
Over a five-year period, the board decided to return approximately 85 percent of the free cash flow cumulatively through a combination of semi-annual dividends, share buyback, special dividends etc.
The filing said,”The Company has engaged the services of NSDL for the purpose of providing e-voting facility to all its members. The remote e-voting will commence from Thursday, November 3, 2022 and shall end on Friday, December 2, 2022. The results of the postal ballot will be announced on or before Sunday, December 4, 2022,”.
Buyback Through Open Market Purchase
As per proposal, the buyback is to be implemented by the company by way of open market purchases through Indian stock exchanges.
For this process, Infosys has fixed a cut-off date of October 28 for shareholders who are eligible to participate in the postal ballot process.
For the September quarter, the company has posted an 11 percent year-on-year rise in consolidated net profit to Rs 6,021 crore.
For the second quarter of 2022, the revenue rose 23.4 percent year-on-year to Rs 36,538 crore.
It stood at Rs 29,602 crore in the year-ago period.
Besides this, Infosys has also announced to pay an interim dividend totalling Rs 6,940 crore to the shareholders.
Being India’s second largest IT services company, its net profit stood at Rs 5,421 crore in the same period a year ago.