Infosys approves Rs13,000 crore share buyback at 24.57% premium
Mumbai: Infosys board has announced buyback of shares worth Rs13,000 crore after the stock went through a sharp correction on Friday on chief executive officer and managing director Vishal Sikka’s surprise resignation
In its board meeting on Saturday, the information technology major said that the company will buy back up to 11,30,43,478 crore shares aggregating up to 4.92% of the paid-up equity capital via tender route at a price of Rs1,150 per equity share.
“The buyback offer size is 20.51% of the total paid-up equity capital and free reserves of the company as per the latest audited balance sheet as on 30 June, 2017,” said a company statement to BSE.
However, the buyback price at Rs1,150 per share is at a steep 24.57% premium to the closing price of Rs923.10 on Friday. The stock had slipped 9.6% at closing, its sharpest fall since 12 April 2013. In intraday, the stock fell as much as 13.4% and touched near three year low of Rs884.40 a level last seen on 21 August 2014.
The company, said in a statement, the buyback price was at a 19.08% and 18.70% premium over the volume weighted average market price of the stock in the past three months preceding the date of intimation to the stock exchanges of the board meeting to consider proposal of buyback.
The record date for the buyback will be announce at a later date.