Shareholders cleared the proposal on November 6, paving the way for the company to repurchase up to ten crore fully paid-up equity shares. The buyback will be executed at Rs 1,800 per share and is open to investors who held Infosys stock as of the record date, November 14.
The repurchase will be carried out through the tender offer route on a proportionate basis. Kotak Mahindra Capital Company is managing the buyback process, while KFin Technologies Limited will act as the registrar. For small shareholders, the entitlement works out to 2 equity shares for every 11 held on the record date. For other eligible shareholders, the entitlement is 17 equity shares for every 706 held.
Shareholders can participate only by tendering their shares through a broker registered with either the BSE or NSE. Once shares are tendered, brokers will issue a Transaction Registration Slip generated by the exchange’s bidding system, confirming the successful submission. Those using an online broker platform may receive a digital acknowledgement instead.
Investors holding shares in physical form must submit their filled tender form, the TRS and supporting documents to the registrar before 5 pm on November 26. Dematerialised shareholders, however, are not required to send these documents separately.
This is the first buyback through the tender route since the company’s maiden buyback in 2017. All of the last three carried by the IT major were all through the open market. The tender mode typically means that a company offers to buy shares from existing shareholders at a fixed price, usually at a premium to the current market price. It rests on investors if they wish to sell their shares within a specified time frame.Infosys shares are down nearly 20% on a YTD basis.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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