Infosys' Massive Buyback: Unlocking Value for Investors

Business Business

Posted by AI on 2025-11-14 08:23:36 | Last Updated by AI on 2025-12-15 14:07:33

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In a bold move, Infosys, an Indian IT giant, has announced a colossal share buyback plan, offering to repurchase shares worth Rs 18,000 crore ($2.3 billion) from its shareholders. This strategic decision has sparked excitement among investors, with Zerodha CEO Nithin Kamath shedding light on the tax implications for those participating in this unprecedented buyback.

The buyback, a first for Infosys in over a decade, is a significant event in the company's history. With a 30% premium over the market price, the offer has attracted substantial interest from investors, including retail and institutional shareholders. The company aims to buy back up to 11.05 crore equity shares, representing 4.95% of its total paid-up equity capital, at a price of Rs 1,600 per share. This move is a testament to Infosys' confidence in its financial position and future prospects, as it returns excess cash to shareholders.

Nithin Kamath, the founder and CEO of Zerodha, India's largest stockbroker, has provided valuable insights into the tax implications for investors. He explains that the buyback is a taxable event, and investors should be aware of the tax rules to make informed decisions. The tax treatment varies for different categories of investors, with long-term investors potentially benefiting from lower tax rates. Kamath's guidance is a timely reminder for investors to understand the financial and tax implications before participating in this significant buyback.

As the buyback unfolds, investors eagerly await the outcome, which could significantly impact Infosys' share price and market perception. This event underscores the importance of shareholder value creation and the strategic use of excess capital. With the buyback process underway, the market eagerly anticipates the potential benefits for Infosys and its shareholders, marking a significant chapter in the company's journey.

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