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Infosys Buyback, Shares Gain up to 4% intraday, Nifty IT Shines
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One of India's IT giants, Infosys, on September 8, 2025, announced that its board will meet on September 11 to discuss a proposal for a possible equity share buyback. This marks the first potential buyback since December 2022
Infosys has returned more than 85% of its free cash flow for the last five years as dividends and buybacks.
What is the Infosys Buyback History?
Previous years have also seen the Infosys buyback. A brief history of the same is being provided below:-
2022: Rs. 9,300 crores through open-market buybacks at Rs. 1,850/share
2021: Rs. 9,200 crores with a cap of Rs. 1,750/share
2019: Rs. 8,260 crores at Rs. 747.38/share
2017: Rs. 13,000 crores at Rs. 1,150/share buyback tender.
Infosys Share Price Today Amid Buyback
Infosys share gained 3.6% to 4%, hitting Rs. 1,150 and reaching up to Rs. 1500. As of writing this report on 09 Sep 2025, around 12:29 pm, Infosys Share Price is Rs. 1499.
What could be the Infosys Buyback Impact on the Nifty IT Index?
The buyback proposal brought on several positive shifts. The Nifty IT index and subsequently the market improved due to happier screens across the board. The IT sector even closed a 5-day losing period. Other regions with Sensex up over 150 points and Nifty50 over 24,800 due to optimism from Infosys. The Nifty IT index was again lifted by Infosys.
Increasing interest in emerging markets has also been spurred by increasing optimism about U.S. Federal Reserve rate cut expectations
What does the Infosys Buyback Mean for Investors?
Focus on cash return & shareholders: Infosys has accumulated cash reserves amounting to nearly Rs. 40,000 crore, leading to the conclusion that the company has chosen to reward shareholders rather than expand the company through mergers and acquisitions.
Play on undervaluation: The company’s expected P/E ratio is approximately 22.8x, which is below the 5-year average of 24.8x. Hence, the past performance makes the buyback favourable and attractive.
Reduction in uncertainty: The uncertainty associated with macroeconomics, which correlates with the company’s stock price, can be reduced, as the IT sector is expected to perform poorly, with Infosys stock already dropping 24% on a year-to-date basis and the IT index down approximately 19% to 21%.
Increased market confidence and EPS: Buybacks tend to signal management’s intentions to increase the stock price as share count is reduced, thus increasing EPS and also signal management’s confidence in the company.
Infosys Buyback - Summary Table
|
Topic |
Highlights |
|
Buyback Proposal |
First buyback since 2022. Board will consider on schedule - September 11, 2025 |
|
Stock Movement Today |
Shares are trading at Rs. 1,485 and Rs. 1501, up approximately 4.9% |
|
Market Impact |
After a 5-day losing streak, the IT index rallied |
|
Investor Signals |
Signals include undervaluation with return capital, a boost in EPS, and confidence |
|
Outlook |
After the board meeting, we expect details on the price and structure of the buyback. |
(Sources: Upstox, Business Today, TOI, Reuters)
Conclusion
Investor confidence has increased as a result of Infosys buyback, pushing shares up almost 4% intraday. Strong cash reserves, appealing valuations, and management's emphasis on rewarding shareholders are all indicated by the move. Market confidence has improved as Nifty IT ended its losing run. For the final buyback specifics, investors should keep an eye on the board meeting on September 11.
DISCLAIMER: This blog is NOT any buy or sell recommendation. No investment or trading advice is given. The content is only for educational purposes. Always discuss with your SEBI-registered financial advisor for investment-related decisions.
Frequently Asked Questions
On September 8, 2025, Infosys announced that its board will meet on September 11 to discuss a proposal for a possible equity share buyback. Before that, the company in 2022 bought shares through open-market buybacks worth Rs. 9,300 Cr at Rs. 1,850/share.
Infosys gave outstanding returns of 171.85% in the last 10 years, whereas the Nifty 50 gave 228% returns.
To enhance its financial accounts and increase the value of its stock, a company may decide to buy back its shares. When the stock market is rising and companies have cash on hand, they often buy back shares. A repurchase frequently results in an increase in the stock's price, but there is a chance that it could also decrease.
A Rs. 10,000 initial investment in Infosys's 1993 IPO would have increased to over Rs. 15 Cr.
