Infosys board meets today to consider ₹10,000-15,000cr share buyback
Infosys's board is meeting today to consider a major share buyback, possibly between ₹10,000 crore and ₹15,000 crore—about 3% of its shares.
This would be the company's fifth buyback since listing.
Buyback boost
Infosys shares have dropped nearly 25% in the past year as global investors pulled out of Indian IT stocks.
But since the buyback was announced on September 8, shares bounced up 7%, closing at ₹1,532 on September 10.
With huge cash reserves and strong cash flow, analysts think this move could lift Infosys's earnings per share by up to 5%.
Investors are now waiting for more details on how this will play out.
Past performance
Past Infosys buybacks have had mixed results—sometimes prices dipped right after, but other times they jumped as much as 18.7% over six months.
This new approach comes at a time when both Infosys and the broader tech sector are facing some tough challenges.