Infosys Buyback 2022

Established in 1981, Infosys is a NYSE listed global consulting and IT services company with more than 217,700 employees. From a capital of US$250, they have grown to become an US$11.31 billion company with a market capitalization of approximately US$ 76.4 billion.

In the journey of over 35 years, they have catalyzed some of the major changes that have led to India’s emergence as the global destination for software services talent. They pioneered the Global Delivery Model and became the first IT company from India to be listed on NASDAQ. The employee stock options program created some of India’s first salaried millionaires.

Infosys is a global leader in next-generation digital services and consulting. They enable clients in 45 countries to navigate their digital transformation.

They do it by enabling the enterprise with an AI-powered core that helps prioritize the execution of change. They also empower the business with agile digital at scale to deliver unprecedented levels of performance and customer delight.

They always-on learning agenda drives their continuous improvement through building and transferring digital skills, expertise, and ideas from our innovation ecosystem.

Buy Back Offer Deal:

Buyback Type: Open Market
Buyback Offer Amount: ₹ 9300 Crore
Date of Board Meeting approving the proposal: Oct 13 2022
Date of Public Announcement: Oct 13 2022
Price Type: Open Market
FV: 5
Buyback Price: ₹ 1850 Per Equity Share

Details of Buyback:

The Board approved a proposal for the Company to buyback its own fully paid-up equity shares of face value of Rs5/- each (“Equity Shares”) from the equity shareholders of the Company (other than the promoters, the promoters group and persons in control of the Company), being 14.84% and 13.31% of its total paid-up capital and free reserves as on September 30, 2022 (on a standalone and consolidated basis, respectively) for an amount, payable in cash, aggregating up to Rs.9,300 crore (Rupees Nine Thousand Three Hundred crore only) (“Maximum Buyback Size”) which is less than 15% of the aggregate of the total paid-up share capital and free reserves of the Company, based on the latest audited financial statements of the Company as at September 30, 2022 (on a standalone and consolidated basis), for a price not exceeding Rs.1,850/- (Rupees One Thousand Eight Hundred and Fifty only) per Equity Share ("Maximum Buyback Price"), through the open market route through the Indian stock exchanges, in accordance with the provisions of the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018 (as amended) ("Buyback Regulations”) and the Companies Act, 2013 and the rules made thereunder (“Buyback”).

Salient financial parameters:

Particulars(in Crores) Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
Sales 53,319 62,441 68,484 70,522 82,675 90,791 100,472 121,641
Expenses 38,436 45,362 49,880 51,700 62,505 68,524 72,583 90,150
Operating Profit 14,883 17,079 18,604 18,822 20,170 22,267 27,889 31,491
OPM % 28% 27% 27% 27% 24% 25% 28% 26%
Other Income 3,430 3,120 3,050 3,311 2,882 2,803 2,201 2,295
Interest 12 0 0 0 0 170 195 200
Depreciation 1,017 1,459 1,703 1,863 2,011 2,893 3,267 3,476
Profit before tax 17,284 18,740 19,951 20,270 21,041 22,007 26,628 30,110
Tax % 28% 28% 28% 21% 27% 24% 27% 26%
Net Profit 12,372 13,489 14,353 16,029 15,404 16,594 19,423 22,146
EPS in Rs 26.93 29.36 31.24 36.69 35.26 38.96 45.42 52.56

How to Participate in buyback?

In this method of share Buyback, the company will be purchasing stocks from existing shareholders of the company directly from the market. Example: “Infosys Technology ” announces buyback plan of its shares up to value of Rs 1850, it means that the company will be purchasing shares of "Infosys Technology " from the open market at a price not exceeding Rs.1850 per share. Scenario 1- If the share price is below Rs. 1850 in that case, the company will put buy order at Current Market Price and purchase shares. Scenario 2- If the share price is above Rs. 1850, in that case, the company will put buy order at Rs. 1850 only and if someone is ready to sell at Rs.1850 or less then only company will get back shares.

Profit from the buyback on the bases of acceptance Ratio:

NA as it is open market buyback


NA as it is open market buyback


Leave a Reply