Infosys completes Rs13,000 crore share buyback
A total of 113,043,478 equity shares were bought back under the buyback at a price of Rs1,150 per equity share, says Infosys in a regulatory filing
New Delhi: IT services major Infosys Ltd on Saturday said it has completed its Rs13,000 crore buyback programme that saw participation from Sudha Gopalakrishnan, Rohan Murty and Life Insurance Corporation of India (LIC) among others.
The buyback scheme—a first in the company’s over three decade history—commenced on 30 November and closed on 14 December. “(A total of) 11,30,43,478 equity shares were bought back under the Buyback at a price of Rs 1,150 per equity share. The total amount utilised in the buyback is Rs13,000 crore excluding transaction costs...” Infosys said in a regulatory filing.
The programme saw participation from LIC, Singapore government, Sudha Gopalakrishnan (wife of co-founder S. Gopalakrishnan) and Rohan Murty (son of co-founder N.R. Narayana Murthy’s son) among others. The filing showed that of all the equity shares tendered in the buyback, 5.41% were by LIC and 2.18% by Singapore government.
Similarly, 15 lakh shares of Sudha Gopalakrishnan and 13.92 lakh shares held by Murty were accepted under the buyback. As of September this year, Sudha Gopalakrishnan held the largest share in individual capacity among promoters group members with 2.14% shareholding.
The founders and families — classified as promoters group — held 29.28 crore shares, or 12.75%, in Infosys at the end of September 2017. After the buyback, the promoter group now holds 12.90% share, as per the filing.
The buyback had been a long-standing demand by some of the founders and high-profile former executives, who have been pushing Infosys to return surplus capital to shareholders. Share buybacks typically improve earnings per share and return surplus cash to shareholders, while supporting share price during period of sluggish market condition.
Earlier this year, its larger rival Tata Consultancy Services completed a Rs16,000 crore mega buyback offer. Other competitors like Cognizant, Wipro and Mindtree had also made similar announcements.
Editor's Picks »
- On Independence Day, India gets back its 12th century stolen Buddha statue
- Turkey imposes up to 140% tax on rice, alcohol, cars from US
- Telecom Commission likely to discuss Trai’s proposal on spectrum allocation on 31 August
- Asian Games 2018:‘The scars will be there’, says Dutee Chand on gender-row
- Patanjali to relaunch Kimbho app on 27 August