Shares of Infosys Ltd surged 3% on Thursday, October 23, emerging as the top gainer on the Nifty 50 index following a key update on the company’s largest-ever share buyback. As of 9:20 AM, the shares were trading 3.04% higher at Rs 1,517.10.
In an update to the stock exchanges on October 22, Infosys announced that its promoters, including Nandan Nilekani, Sudha Murty, and others, will not participate in the ₹18,000 crore share buyback.
Promoters skipping a buyback is generally seen as a positive signal, indicating confidence in the company’s growth prospects. Analysts also note that this move could increase the retail investor entitlement ratio when the buyback opens.
While the entitlement ratio, record date, and other key dates for the buyback are yet to be announced, the company confirmed it will repurchase 10 crore shares at ₹1,800 per share. This price represents a 22% premium over Wednesday’s closing price.
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