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New Delhi: Infosys' share buyback window opens on 20th November and will close on November 26. The buyback offer of about Rs 18,000 million is considered the biggest buyback of the second largest IT company in India so far. The buyback price has been fixed at Rs 1,800 per share. This is the company's first buyback since 2022, when Infosys approved a buyback worth Rs 9,300 crore. Before the buyback, the Infosys shares witnessed a strong rise and it is jumping about 4 percent to trade around Rs 1,541. The Nifty IT index is also in good growth and has climbed about 3 percent to 36,970.85 level. Infosys is currently the top gainer of Nifty IT.
The buyback window will be open from 20th November to 26th November. In the meantime, investors will have to tender their shares. After the buyback, the registrar will complete the share verification work by 1 December and the necessary information will be sent to the exchange on 2 December. The settlement will take place on 3 December in which the sanctioned shares will be paid and the rejected shares will be returned to the investors. After this, shares purchased under buyback on 12 December will be cancelled.
Investors holding 11 shares in the retail category will have 2 shares accepted. Whereas, 17 shares of investors holding 706 shares in the category of FIIs, DIIs and other investors will be accepted. Overall, the average buyback ratio is 1 share at around 37.73 shares, which indicates that the allotment will be limited, but the situation is slightly better for retail.
Many research houses have a positive view on Infosys. Out of a total of 51 houses, 36 have given the stock a Buy rating. 13 firms have maintained a Hold rating. However, two have recommended selling. According to market experts, the average target of Infosys is around Rs 1,707, which shows a good upside from the current price.
Infosys shares have recorded a slight increase of 0.19 percent in the last one week. The stock has climbed 6.78 percent in three months, whereas in the last one year it has seen a decline of 15.36 percent. That means the stock is showing short-term recovery but long-term performance is still under pressure.
(Disclaimer: This article is only meant to provide information. TV9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, gold, silver and crypto assets.)
