Infosys announces its biggest-ever share buyback of Rs 18,000 crore at 19% premium
Leading IT services player Infosys Ltd on Thursday announced a buyback of Rs 18,000 crore through a tender route, its biggest ever since listing. The Bengaluru-based IT major will buyback about 10 crore shares, representing 2.41% of equity at Rs 1,800 apiece, which will be 19% premium over the current market price.
Under a buyback through the tender offer, a company usually offers to repurchase a specific number of shares at a fixed price that is higher than the current market price. This offer is open for a limited period, and shareholders can offer their shares to the company.
The pre-set buyback provides certainty to investors about the value they will receive for their shares. If the number of shares tendered exceeds the number the…
