Infosys has pressed the reset button on sentiment with a headline move: a ₹18,000 crore share buyback priced at ₹1,800 per share through the tender route. The board cleared the proposal on September 11, saying it plans to repurchase up to 10 crore shares, about 2.41 percent of its equity capital, subject to shareholder approval by special resolution. The record date will be announced later. For India’s second–largest IT services firm and its roughly 26 lakh investors, this is not just a cash return. It is a signal on confidence, capital discipline, and the company’s preferred way to reward patient holders in a choppy tech cycle.
In plain terms, a tender offer lets all eligible shareholders submit shares at a fixed price. If the offer is oversubscribed, acceptance happens proportionately. Infosys has set that fixed price at ₹1,800, which implies a premium of about 19 percent to the previous close around the time of the announcement. Early trading after the news reflected that reset in mood, with the stock firming up intraday on Friday.
What exactly is on the table
According to the company’s exchange filing, the buyback size is capped at ₹18,000 crore, the price is ₹1,800 per share, and the maximum number of shares that can be accepted is 10 crore. The route is a tender offer and the program needs shareholder nod via a postal ballot. The board has also constituted a buyback committee to run the process. Holders of American Depositary Shares can participate if they cancel ADSs and withdraw underlying equity in time for the record date, and the company plans to seek customary exemptive relief from the U.S. SEC to manage procedural frictions between Indian and U.S. rules.
How the tender offer works for small investors
Under SEBI’s framework, tender buybacks reserve a portion for small shareholders, defined by holding value up to ₹2 lakh as on the record date. This reservation is 15 percent of the shares proposed to be bought back. In practical terms, it can lift acceptance chances for retail investors compared with large institutions when the offer is heavily subscribed. That does not guarantee a specific acceptance ratio, but it changes the math at the margin.
Why Infosys is doing this now
Infosys has a history with buybacks and a stated capital–return policy. Over the past decade the company has executed multiple repurchases, including an open–market program in 2022. The latest move is its largest in ten years and arrives after a period of softer share performance alongside a subdued demand patch for Indian IT. Putting cash to work at a premium price is management’s way of telling the market that the balance sheet is strong and the long–term pipeline is worth backing.
Market reaction and the premium question
A tender price of ₹1,800 sets a clear anchor for short–term positioning. If the market trades meaningfully below that level during the offer window, some investors will consider a tender strategy to capture the spread, while others may simply hold on, treating the signal as a vote of confidence. In early dealings after the announcement, the stock edged higher, though day–to–day moves will hinge on flows, global tech cues, and the buyback timetable.
What it means for 26 lakh shareholders
Infosys counts about 26.17 lakh shareholders across categories. For small investors, the key variables are the record date, the final acceptance ratio, and taxes on any gains. Because the offer is through the tender route, each retail holder will be able to tender proportionately and benefit from the 15 percent reservation rule, subject to eligibility on the record date. Large domestic funds and foreign investors will run their own models on capital efficiency, earnings per share accretion, and the opportunity cost of tendering versus staying invested into a potential demand recovery in FY26–FY27.
A quick timeline check
The buyback must first secure shareholder approval via postal ballot. After that, the company will publish a detailed Letter of Offer with dates and instructions. Based on past cycles in the market, completion can take a few months from board approval to settlement, although exact timelines depend on regulatory steps and investor response.
Policy backdrop
India is phasing out the open–market buyback route, which makes tender offers the primary path for large repurchases. That context partly explains why Infosys has chosen the tender method this time. For investors, the tender structure has one advantage. Everyone sees the price upfront, which removes the uncertainty that often comes with open–market programs.
Investor lens: three things to track
First, watch the record date. Eligibility is decided there, and many retail investors attempt to align positions ahead of it. Second, monitor the participation by large holders because oversubscription will influence acceptance ratios across investor classes. Third, keep an eye on the operating commentary from management in the run–up to the offer. If large deal wins or margin levers improve, some investors may prefer not to tender, hoping to ride a broader upcycle in discretionary tech spending.
A fund manager I spoke with captured the mood neatly: “Buybacks do not fix demand cycles, but they do protect value when execution is steady and the cash register is ringing. For a widely held stock like Infosys, a clean tender offer is a strong message,” he said, summing up why the Street usually welcomes such moves.
The bottom line
Infosys is sending a clear signal. It is willing to return surplus cash even as it navigates a slower patch in global IT spending. The ₹1,800 price puts a floor under near–term expectations. For retail holders, the tender route and the small–shareholder reservation can be helpful, though outcomes will ultimately depend on subscription. For long–term investors, the buyback can be seen as one more proof of disciplined capital allocation that has characterized India’s top IT names for years.