Infosys share price jumps over 4% after promoters opt out of share buyback

Infosys share price rose by more than 4% during Thursday's trading session following an announcement regarding its largest share buyback to date.

In a communication to the exchanges on October 22, Infosys revealed that the company’s promoters, including Nandan Nilekani, Sudha Murty, and others, will not take part in the ₹18,000 crore share buyback program that was declared in October.

The promoters of Infosys comprise Sudha N Murty, wife of co-founder N R Narayana Murthy, along with their daughter Akshata Murty and son Rohan Murty. Additionally, the promoters include co-founder Nandan Nilekani, his spouse Rohini Nilekani, and their children Nihar and Janhavi Nilekani. Other co-founders and their respective families are also counted among the company's promoters.

The company has revealed it will be conducting its most extensive share buyback, repurchasing 10 crore shares at ₹1,800 each, which represents a 22% premium compared to the closing price on Wednesday.

"Since the promoters and the promoter group of the company have declared their intention to not participate in the buyback, equity shares held by them have not been considered for the purpose of computing the entitlement ratio," said, the company.

This buyback is conducted after considering the medium-term strategic and operational cash requirements and the need to efficiently return surplus funds to shareholders in alignment with Infosys’ capital allocation strategy, as stated in the filing.

Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities said that promoters choosing not to participate in the buyback is a strong signal of confidence in the company’s long-term prospects. It indicates that they believe the shares are undervalued and worth holding, rather than cashing out at current levels.

“This move is shareholder-friendly and value-accretive, as it not only reflects management’s optimism but also increases the acceptance ratio for retail investors. The market’s positive reaction underscores this sentiment. Technically the stock would continue to be in positive range with limited downside from the current levels, ” added Tapse.

Infosys share price today

Infosys share price today opened at ₹1,515 apiece on the BSE, the stock touched an intraday high of ₹1,536.60 apiece, and an intraday low of ₹1,506.90 per share.

Prashanth Tapse said that Infosys (CMP ₹1,524) is showing consolidation near its key support zone of ₹1,500–1,510, indicating strong buying interest at lower levels. A sustained move above ₹1,540 could trigger upside momentum toward ₹1,575–1,620. RSI remains neutral around mid-levels, suggesting potential for a breakout on volume expansion. Maintain a positive bias while holding above ₹1,500.

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