Infosys's ₹18,000cr share buyback opens November 20: Check eligibility
What's the story
Infosys, India's second-largest IT services company, has announced a share buyback worth ₹18,000 crore. The buyback window will open on November 20 and close on November 26. Shareholders had approved the plan on November 6 for up to 10 crore fully paid-up equity shares. The shares will be bought at a price of ₹1,800 each from shareholders who held the company's shares as of the record date of November 14.
Procedure
Buyback process and entitlements for shareholders
The buyback will be conducted on a proportionate basis through the tender offer route. Small shareholders are entitled to two equity shares for every 11 held on the record date, while general category shareholders can tender 17 equity shares for every 706 they hold. Kotak Mahindra Capital Company has been appointed as manager to the buyback and KFin Technologies Limited is its registrar.
Guidelines
Eligibility and confirmation process
Eligible shareholders can only participate in the buyback by tendering stocks through a stock broker registered with either BSE or NSE. Upon tendering of shares, the stock broker will provide a Transaction Registration Slip (TRS) generated by the stock exchange bidding system to confirm successful tendering of equity shares in the buyback. Shareholders participating via an online website platform may receive an acknowledgment instead of a TRS.
Requirements
Physical tendering and deadline for submission
Shareholders holding equity shares in physical form must submit a duly filled and signed tender form, TRS, and requisite documents to the registrar before 5:00pm on the last date of tendering. However, those tendering the dematerialized equity shares under the buyback are not required to submit these documents. Infosys shares ended at ₹1,486.80 on NSE today, down by ₹20.80 or 1.38% from Monday's closing price after the announcement was made post market hours.