Introduction — why the Infosys buyback matters

The announcement of a buyback from Infosys — one of India’s largest IT services companies — is an important corporate finance event. Buybacks affect shareholder value, capital structure, and market perception. This guide decodes the 2025 buyback, explains the process (tender vs open market), compares historical buybacks, and gives practical guidance for shareholders deciding whether to tender shares at the announced buyback price.

How buybacks work — tender offer vs open market

Buybacks are broadly structured in two ways. The structure determines how shareholders participate and the likely short‑term impact on stock price and liquidity.

Tender offer (fixed-price)

Under a tender offer, the company announces a fixed price for the buyback, and shareholders are invited to tender (offer) any or all of their shares. If total shares tendered exceed the maximum intended buyback amount, acceptance is made on a pro rata basis across all tendering shareholders, known as the acceptance ratio.

Open market / on-market

Here the company buys shares gradually from the stock market at prevailing prices. There is no one-time price advantage; however, open market programs offer greater execution flexibility and lower immediate signaling effects.

Infosys buyback history: A detailed timeline

Below is a chronological summary of major buybacks by Infosys over the last decade. This table provides context for the 2025 buyback.

Observation: The 2025 buyback is the largest by absolute value (₹18,000 crore) and notable for its fixed price which is above pre‑announcement market levels.

Infosys Buyback 2025 — full facts, price and what changed

This section consolidates the definitive facts about the 2025 tender offer — the figures that matter to shareholders and analysts alike.

Why the fixed price matters: A fixed tender price gives shareholders clarity and allows those seeking cash to exit at a known premium. It also signals management’s view that the market undervalued the shares prior to the announcement.

Buyback process & dates — step-by-step (what to expect)

Below is a generic timeline model for a tender offer buyback. The official buyback circular will contain the firm dates — record date, opening and closing of tender window, and payment/settlement dates.

1. Board meeting & announcement: Official confirmation and disclosure of buyback terms (completed September 11, 2025).
2. Record date announcement: Date on which holdings are frozen for eligibility.
3. Tender window: Window (usually 10–20 business days) to submit tenders via broker/DP.
4. Tender opening and closing: The precise times/dates for acceptance of offers.
5. Acceptance & payment: Company announces acceptance ratio, pays accepted tender amounts, and cancels repurchased shares.
6. Regulatory filings: Filings with stock exchanges and ROC documenting the completion.

Illustrative acceptance ratio — worked example

Pro rata acceptance is often the biggest practical surprise for first‑time participants. This simple illustration clarifies how many shares you may expect to have accepted if the offer is oversubscribed.

Important nuance: Some buybacks have separate categories (retail set‑aside, small shareholders). If such categories exist they often have preferential acceptance rules — check the circular.

Financial & accounting impact on Infosys (company perspective)

From a company viewpoint, a large buyback affects balance sheet composition, cash reserves and per‑share metrics:

• Cash reduction: ₹18,000 crore cash outflow reduces cash reserves and may affect liquidity ratios temporarily.
• EPS uplift: Buying back shares reduces outstanding shares and therefore can increase EPS (all else equal).
• Return on equity (ROE): With lower equity base, ROE may mechanically increase.
• Capital allocation signal: Management indicates buyback as preferred use of capital versus capex or acquisitions.

Analysts often adjust forecasts for fewer shares outstanding when valuing firms post‑buyback.

Tax & accounting implications for shareholders

Tax treatment of buybacks can change across years and jurisdictions. The information below is educational — consult your tax advisor for personalised guidance.

India — retail individual shareholders

• Historically, buybacks were subject to a company-level buyback tax in India, which meant the company paid tax on the distributed amount and shareholders received net proceeds without additional immediate tax. This regime has experienced policy changes — always confirm current rules.
• If buyback proceeds are treated as capital gains for the shareholder, capital gains tax may apply depending on holding period (short-term vs long-term) and exemptions.

Foreign investors & institutional holders

Tax and withholding obligations will often depend on treaties, custodian practices and local tax rules. Institutional investors must consult tax counsel and custodians.

Investor strategies — how to decide whether to tender

Deciding between tendering and holding depends on individual goals, tax situation, conviction in the company and liquidity needs. Below are several decision frameworks used by investors.

Rule‑based approach

• Need for cash: If you require liquidity now and ₹1,800 is attractive relative to expectations, tendering makes sense.
• Valuation view: If you believe Infosys will trade well above ₹1,800 in the medium term, holding could be better.
• Risk appetite: Tendering reduces exposure; holding maintains exposure to market upside and dividends.

Fractional tendering (balanced method)

Many investors divide holdings into tranches (e.g., tender 30–50% and retain rest). This captures part of the premium while preserving upside potential if the stock outperforms later.

Tax‑aware approach

If tax on buyback proceeds is materially different from capital gains tax, a tax‑aware calculation may change the decision. Model after‑tax proceeds both ways and choose accordingly.

Pros, cons and risks

Pros

• Immediate premium for tenderers (₹1,800 vs pre‑announcement market price).
• EPS improvement for remaining shareholders.
• Management shows confidence and returns capital efficiently.

Cons & risks

• Reduces cash that could be used for acquisitions or investments.
• Buybacks can be perceived as market timing; if price later rises substantially tenderers miss out.
• Tax rule changes or unexpected withholding could reduce net proceeds for some shareholders.

Extended FAQ — quick answers for investors

Q: What is the infosys buyback price 2025?

A: ₹1,800 per fully paid up equity share (face value ₹5).

Q: When was the buyback approved?

A: The board approved the buyback on September 11, 2025.

Q: How many shares will Infosys buy back?

A: Up to 10 crore shares (maximum) — subject to the tender and acceptance process.

Q: Will all tendered shares be accepted?

A: Not necessarily — acceptance depends on the total tender volume and the acceptance ratio. If oversubscribed, acceptance is proportional.

Q: Where can I find the official buyback circular?

A: The official circular will be posted on Infosys’ investor relations page and filed on stock exchange platforms. Always rely on the official circular for procedural steps and helpline contacts.

Investor checklist & practical tips

1. Download and read the official circular — it defines the record date, tendering mechanism, broker instructions and tax notes.
2. Confirm demat details — ensure shares are in your demat account at record date and are not under lien.
3. Decide strategy — full tender, partial tender, or hold. Model after-tax proceeds in each scenario.
4. Submit tender early — meet your broker’s deadlines to avoid last‑minute rejections.
5. Keep records — save tender confirmations, acceptance notices and payment receipts for tax reporting.

Case study: What happened in the 2017 buyback?

The 2017 tender offer was one of the larger repurchases in Infosys’ history. It served as a precedent for management’s willingness to return significant capital to shareholders. Below are the essential facts and lessons.

Conclusion

The Infosys buyback 2025 at ₹1,800 per share and ₹18,000 crore is a major corporate finance event. It offers shareholders a premium exit option and reduces the outstanding equity base, potentially improving per‑share metrics for those who remain. The right personal decision depends on liquidity needs, tax position and confidence in future share appreciation. Use the checklist above, read the official circular, and consult advisors where needed.