12 Sep 2025 : Infosys Ltd.’s share price surged on plans for its biggest buyback since listing in 1993. On Friday, the stock of India’s second largest IT services firm gained as much as 2.32% at the open even as the benchmark S&P BSE Sensex was 200 points higher.
The board of directors of the IT bellwether has approved a proposal to repurchase 10 crore fully paid-up equity shares of face value ₹5 each at ₹1,800 apiece, according to an exchange filing on Thursday. Meaning, the buyback is equivalent to 2.41% stake in the company and worth ₹18,000 crore.
The buyback size does not exceed 25% of the aggregate paid-up capital and free reserves, based on the latest financials as on 30 June 2025, the company stated.
As on 30 June 2025, Infosys had a free cash flow of ₹7,533 crore—a 17.7% year-on-year decline—but still 108.8% of net profit, according to quarterly results data. In US dollar terms, free cash flow was $884 million, or 109% of net profit. Infosys held consolidated cash and investments of ₹45,204 crore as on 30 June 2025.
A record date for the Infosys buyback will be announced later.
A share buyback typically indicates that the management views the stock as undervalued and that it has sufficient cash reserves. Infosys has a policy to return to a substantial portion of its free cash flow to shareholders.
To be sure, this is only the fourth buyback in the history of the company that was co-founded by N.R. Narayana Murthy in 1981. Infosys went on to list in February 1993.
- 2017: The first-ever buyback in Infosys’ three-decade history. The company repurchased 11.30 crore shares at ₹1,150 apiece, totalling ₹13,000 crore.
- 2019: Infosys bought back from the open market 11.05 crore shares at an average price of ₹747.38 apiece, totalling ₹8,260 crore.
- 2021: In another open market transaction, Infosys picked up shares worth ₹9,200 crore to ₹9,300 crore at ₹1,750-1,850 apiece.
“Indian IT companies are largely service-driven and investor friendly and that’s why they are still looking at buybacks,” Gaurav Vasu, founder of market research firm UnearthInsight, told Reuters. “They should look at M&A and also build products aimed at AI and cloud like the big tech companies of the US.”
Summary : Infosys share price surged over 2% after the company revealed its largest-ever buyback plan, boosting investor confidence and signaling strong financial performance in FY25.