Amid expansion buzz, Indian technology giant Infosys, a leader in next-generation digital services and consulting, has announced that it has bought back over 5.58 crore equity shares as part of its about Rs 9,200 crore buyback offer. The shares were bought back at a volume-weighted average price of Rs 1,648.53 per equity share, according to public notice.
“The company bought back a total of 5,58,07,337 equity shares (1.31 percent of the pre-buyback paid-up equity share capital of the company) and the total amount utilized towards the buyback is Rs 9199,99,99,599.80 (excluding transaction costs),” it said.
The Indian technology company is looking to further consolidate its business in new markets, the company has recently announced its plans to expand operations into the Canadian market with a new digital development centre at its largest Canadian office in Mississauga.
Meanwhile, the highest price at which the equity shares were bought back was Rs 1,750, while the lowest price was Rs 1,538.10 per equity share.
“The equity shares were bought back at a volume-weighted average price of Rs 1,648.53 per equity share…The company has extinguished all the equity shares purchased under the buyback,” the notice said.
After the buyback, the promoter shareholding has increased to 13.12% from 12.95%, it added. Infosys board had approved an up to Rs 9,200 crore buyback plan, which commenced on June 25. The IT major had proposed to purchase back shares at a maximum price of Rs 1,750 apiece via open mark through Indian stock exchanges. The offer closed on September 8, 2021.
From 2019-20, Infosys had enhanced its capital allocation plan and had said it will return 85% of free cash flow cumulatively over a five-year period via buyback and dividends. In April, Infosys board had recommended a capital return of Rs 15,600 crore, including a final dividend of Rs 6,400 crore and open market buyback of shares of Rs 9,200 crore.