Infosys ‘almost completed’ buyback programme; committee to meet on Sept 8
Infosys on Monday said it has almost completed its buyback programme and its buyback committee will meet on September 8 to consider closure of the buyback programme.
Infosys board has approved an up to Rs 9,200 crore buyback plan, which commenced from June 25. The IT major had proposed to buy back shares at a maximum price of Rs 1,750 apiece.
“The buyback committee of the company will, on September 8, 2021, consider proposals, including but not to limited to, the closure of the buyback, pursuant to the terms of the public announcement, in view of the fact that the company has utilised 99.99 per cent of the maximum buyback size (excluding transaction costs),” a regulatory filing said on Monday.
The outcome of these considerations will be duly disseminated to the stock exchanges in accordance with the applicable provisions of the Securities and Exchange Board of India norms, it added.
As per the proposed timeline, the last date for the buyback would either be December 24, 2021 (six months from the date of the opening of the buyback) or when the company completes the buyback by deploying the amount equivalent to the maximum buyback size – whichever is earlier.
“Subject to the market price of the equity shares being equal to the maximum buyback price, the indicative maximum number of equity shares bought back would be 5,25,71,428 equity shares, comprising approximately 1.23 per cent of the paid-up equity share capital of the company as of March 31, 2021,” a previous filing had said.
From FY20, Infosys had enhanced its capital allocation plan and had said it will return 85 per cent 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.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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