Infosys' share buyback plan is underway, even as the company's shares trade ex-date for a ₹23 dividend today, October 27, 2025. While the record date for the dividend is today, the record date for the buyback is yet to be announced.
Infosys Share Buyback: Key Details
Infosys, India's second-largest IT services exporter, announced a share buyback program for ₹18,000 crore, marking its largest buyback ever. The buyback was approved on September 11, 2025. The company will repurchase up to 10 crore shares, representing 2.41% of the total number of outstanding shares. The buyback price is set at ₹1,800 per share.
The buyback will be executed through a tender offer route on the NSE and BSE. This method involves inviting shareholders to sell their shares within a specific period at a predetermined price. The tender window will remain open for five working days once announced.
Eligibility and Participation
The buyback offer is open to all shareholders, with 15% of the offer reserved for small investors. A small investor is defined as holding shares worth up to ₹2 lakh. To be eligible for the buyback, investors must hold Infosys shares in their Demat account on the record date. The company has not yet announced the record date for the buyback. Once the record date is announced, shareholders can participate by selling their shares through their broker on the NSE or BSE during the buyback window.
Promoter Non-Participation
Infosys has confirmed that the promoters and promoter group will not participate in the buyback. As of September 30, 2025, the promoter group held 14.30% stake in the company. According to Prashanth Tapse, Senior VP (Research) at Mehta Equities, the promoters' decision not to participate signals confidence in the company's long-term prospects. Even though they are not tendering shares, the promoters' stake will slightly increase after the buyback, as the total number of outstanding shares will decrease.
Funding and Objectives
The buyback will be funded entirely from the company's reserves, with no borrowings. This aligns with Infosys' capital allocation policy of returning 85% of free cash flow to shareholders through dividends and buybacks over five years. Share buybacks can boost shareholder value by reducing the number of outstanding shares, which increases earnings per share (EPS). Buybacks can also be a tax-efficient way to return money to shareholders and signal that management believes the stock is undervalued.
Dividend Details
Today, October 27, 2025, is the ex-date for Infosys' interim dividend of ₹23 per share for the financial year 2025-26. The record date to determine eligible shareholders for the dividend is also today. The dividend will be paid out on November 7, 2025.
How to Apply for the Buyback
- Check Eligibility: Ensure you hold Infosys shares in your Demat account as of the record date (yet to be announced).
- Tender Shares: Once the buyback window opens, submit your shares through your broker or trading platform. This option is usually found in the corporate actions section of your Demat/trading account.
- Acceptance: Note that not all tendered shares may be accepted.
- Payment/Return: Payment for accepted shares will be processed, and unaccepted shares will be returned to your Demat account.
Disclaimer: This article is for informational purposes only and should not be considered investment advice. Consult with a financial advisor before making any investment decisions.
