Infosys shares hit a fresh intraday high as buyback via open route commences on June 25

On June 24 during early trade, Indian multinational IT company Infosys’ shares jumped to a new intraday high on the stock market. The shares of the IT major rose to ₹1,539.90, up by 2.25 per cent on the Bombay Stock Exchange (BSE). Infosys soared by 2.29 per cent at ₹1,537.20 per share on the BSE at 11:50 am.

Since last month, Infosys has surpassed the market by surging 14 per cent as compared to the 4 per cent increase in the Standard & Poor’s (S&P) BSE Sensex. As of June 24, the market capitalization of the company stands at ₹6.56 trillion. The shares reached a new high after the IT company announced its ₹9,200 crore share buyback via open route, which will commence on 25th June i.e. Friday.

Advertisement

It has proposed to purchase buyback shares at a maximum price of ₹1,750 per share. Infosys had informed about its intention of a share buyback during its Q4 FY21 results. On April 14, the board’s approval for the buyback had been issued. At the 40th Annual General Meeting (AGM) of the company on April 19, the shareholder’s approval was received.

According to the IT major, the company is undertaking buyback after taking into account the strategic and operational needs in the medium term. It will also return surplus funds to its members in an effective and efficient way.

Infosys publicly announced that it will be utilizing at least 50 per cent of the amount earmarked as the maximum buyback size for the buyback which is ₹4,600 crore. The IT company will buy an indicative minimum of 26.29 million equity shares as per the minimum buyback size and the maximum buyback price.