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Infosys Share Buyback: Infosys Ltd’s promoters and promoter group, including co-founder Nandan M Nilekani and Sudha Murty, have opted not to participate in the company’s Rs 18,000 crore share buyback, the largest in its history. The decision was disclosed in a regulatory filing on Wednesday.

As per the filing, promoters collectively hold 13.05 per cent of the company’s equity as on the buyback announcement date. Infosys said, “The Promoter and Promoter Group of the Company have expressed their intention of not participating in the Buyback vide their letters dated September 14, 2025, September 16, 2025, September 17, 2025, September 18, 2025 and September 19, 2025.”

The company added that post the proposed buyback, the voting rights of the promoters could change depending on the overall market response.

Infosys’ promoter group includes company co-founder N R Narayana Murthy’s wife Sudha N Murty, daughter Akshata Murty, and son Rohan Murty. It also includes Nandan Nilekani, his wife Rohini Nilekani, and their children Nihar and Janhavi Nilekani. Other co-founders and their families are also part of the promoter group.

On September 11, 2025, the Infosys board approved a buyback of 10 crore fully paid-up equity shares of Rs 5 each, representing up to 2.41 per cent of the total paid-up equity share capital, at Rs 1,800 per share.

The company said the buyback is being undertaken after reviewing its strategic and operational cash requirements and to return surplus funds efficiently to shareholders in line with its capital allocation policy.

With promoters opting out of the buyback, the participation window for retail investors widens. This move could increase the acceptance ratio for small shareholders, allowing them a higher chance to tender their shares at the premium price of Rs 1,800 per share. For long-term investors, the buyback is also likely to support the stock price and enhance earnings per share (EPS) by reducing the total equity base.

Under its stated capital allocation policy, effective from FY25, Infosys plans to return around 85 per cent of cumulative free cash flow over a five-year period through a mix of semi-annual dividends, buybacks, or special dividends, subject to approvals.

The company also intends to steadily increase its annual dividend per share (excluding special dividends). Infosys said the buyback is expected to enhance long-term shareholder value by reducing the equity base.

This will be Infosys’ fifth share buyback. The IT major had launched its first buyback in 2017, worth Rs 13,000 crore at Rs 1,150 per share. Subsequent buybacks were worth Rs 8,260 crore in 2019, Rs 9,200 crore later, and Rs 9,300 crore via the open market in 2022 at a maximum price of Rs 1,850 per share.

On Tuesday, Infosys shares closed 0.72 per cent higher at Rs 1,472 apiece on the BSE

Abhay Shukla is a Senior Sub-Editor at Zee Business, where he covers the stock markets, corporate news, personal finance, technology, and auto sectors.

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