Infosys’ ₹18,000 crore share buyback sees promoters like Narayana Murthy and Nandan Nilekani opting out, boosting retail investor confidence.
Infosys, one of India’s leading IT services firms, has announced its largest-ever share buyback program worth ₹18,000 crore. This move aims to repurchase up to 10 crore fully paid-up equity shares at ₹1,800 per share, representing approximately 2.41% of the company’s total paid-up equity share capital. IND
However, what has caught the attention of investors and analysts alike is the decision of Infosys promoters, including co-founders Narayana Murthy, Nandan Nilekani, and Sudha Murty, to opt out of participating in this buyback. This decision was disclosed in a regulatory filing made on October 22, 2025.
📈 Why Did Infosys Shares Surge After the Announcement?
Following the announcement that promoters would not participate in the buyback, Infosys shares experienced a notable uptick. On October 23, 2025, the stock price rose by 4.12%, reaching a high of ₹1,533.10 on the National Stock Exchange (NSE).
This surge can be attributed to several factors:
- Increased Retail Investor Entitlement: With promoters opting out, more shares are available for retail investors, potentially increasing their chances of having their shares accepted in the buyback.
- Sign of Promoter Confidence: Promoters choosing not to sell their shares may signal their confidence in the company’s future prospects, reassuring other investors.
- Positive Market Sentiment: The broader market’s optimism, bolstered by gains in the IT sector and favorable economic indicators, contributed to the positive movement in Infosys shares.
🧭 What Does This Mean for Retail Investors?
For retail investors, the promoters’ decision to opt out of the buyback can be seen as a positive development:
- Higher Acceptance Ratio: With a larger pool of shares available for repurchase, the likelihood of retail investors’ shares being accepted increases.
- Potential Long-Term Gains: Promoter confidence may indicate strong future performance, suggesting that holding onto shares could be beneficial.
- Strategic Capital Allocation: Infosys’s decision to return surplus funds to shareholders through the buyback reflects a strategic approach to capital allocation, which can enhance shareholder value.
🔍 Understanding the Buyback Process
To participate in the buyback, retail investors need to:
- Check Eligibility: Ensure they hold Infosys shares on the record date, which will be announced by the company.
- Submit Tender Offer: Offer their shares at ₹1,800 per share through the tender offer route on the NSE or BSE.
- Await Results: After the buyback window closes, Infosys will announce the final acceptance ratio and the number of shares accepted.
🧠 Key Takeaways
- Promoter Confidence: The promoters’ decision to opt out signals their belief in Infosys’s long-term growth.
- Increased Opportunities for Retail Investors: More shares available for repurchase can lead to higher acceptance ratios for retail investors.
- Strategic Capital Allocation: The buyback reflects Infosys’s commitment to returning surplus funds to shareholders efficiently.
📣 Call to Action
As a retail investor, how do you perceive the promoters’ decision to opt out of the buyback? Do you plan to participate in the buyback, or do you see this as an opportunity to hold onto your shares for potential long-term gains? Share your thoughts and strategies in the comments below.
