Infosys buyback: Promoters, including Nilekani and Sudha Murty, opt out of ₹18,000-crore buyback

IT services major Infosys's promoters and promoter group, including Nandan M Nilekani and Sudha Murty, have decided not to participate in the company's ₹18,000 crore share buyback, according to a regulatory filing on Wednesday, October 22.

"...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 said.

The promoters collectively hold 13.05% of the company's equity as on the buyback announcement date.

"Pursuant to the proposed Buyback and depending on the response to the Buyback, the voting rights of the Promoters and Promoter Group in the Company, which constitutes 13.05% as on the date of the Public Announcement, may change," Infosys added.

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

Infosys buyback

In September, Infosys’s board approved the company's largest-ever share buyback worth ₹18,000 crore. Infosys will buy 10 crore fully paid-up equity shares of a face value of ₹5 each, representing up to 2.41% of the total paid-up equity share capital, at ₹1,800 per share.

A buyback is when a company repurchases its own shares from the open market or through a tender offer, usually at a price higher than the current market price.

It is undertaken for many reasons, including to reduce the number of shares in circulation, share surplus, improve financial ratios, and increase shareholder confidence.

The buyback was announced considering the strategic and operational cash needs in the medium term, and the need to return surplus funds to the members in an efficient manner in accordance with Infosys's capital allocation policy.

According to Infosys’s Capital Allocation Policy, "Effective from financial year 2025, the Company expects to continue its policy of returning approximately 85% of the free cash flow cumulatively over a 5-year period through a combination of semi-annual dividends and/or share buyback/ special dividends, subject to applicable laws and requisite approvals, if any.”

Infosys intends to gradually increase its annual dividend per share (excluding any special dividends), the company filing said, adding that the buyback is anticipated to increase shareholder value over the long term by reducing the equity base in line with the capital allocation policy.

The company had announced its first share buyback programme in 2017, purchasing 11.3 crore shares, or up to 4.92% of the paid-up equity share capital of the company, at ₹1,150 per equity share, amounting to around ₹13,000 crore.

In 2019, the company held its second buyback worth ₹8,260 crore, followed by a third worth ₹9,200 crore in 2021, and a fourth worth ₹9,300 crore in 2022.

The proposed ₹18,000 crore-buyback, its biggest yet, will be the Bengaluru-headquartered company’s fifth buyback.

The Infosys scrip settled at Rs 1,472 apiece on the BSE on Tuesday, 0.72 per cent higher than its previous close.

Infosys shares

Infosys shares, after the special Muhurat Trading session on Tuesday, ended 0.69% higher at ₹1,471 apiece on the NSE. Over the past five days, the scrip has advanced 0.3%, while it has fallen by 1.9% in the past month.

The stock is up 3.39% when compared to six months ago. Year-to-date, the scrip is down 21.86%.