IT-giant Infosys board of directors has approved a buyback of Rs 9300 crore, while it announced its quarterly results on Thursday.
The Board of directors has approved a proposal for the Company to buy back its own fully paid-up equity shares of the face value of Rs 5 each ("Equity Shares") from the equity shareholders of the Company (other than the promoters).
"In line with the capital allocation policy, the board has announced an interim dividend of Rs 16.50 per share, an increase of 10% over FY 22 interim dividend and an open market share buyback of Rs 9,300 crore," Infosys CFO Nilanjan Roy said at the end of the company's board meeting.
The maximum buyback size is less than 15% of the aggregate of the total paid-up share capital and free reserves of the company as on September 30, 2022.
Infosys has a payout policy to return 75% of its free cash flow over five years (FY20-FY24E) to shareholders. Regulations limit the maximum buyback amount to 25% of net worth.
This would be the fourth share buyback announced by Infosys since its listing in June 1993.
Infosys also declared an interim dividend of Rs 16.50 per share and has fixed October 28, 2022, as the record date for the interim dividend and November 10, 2022, as the payout date.
The total amount of the interim dividend will be approximately Rs 6,940 crore.
Infosys buyback 2022 details
Infosys Buyback Price - INR 1,850 per share
Buyback Offer Size (Shares) - 50,270,270 shares
Buyback offer as % of total shares - 1.19%
Buyback Offer Size (Amount) - INR 9,300 crore
Offer Type - Open Market
Promoter Participation - No
Face Value - INR 5 per share
Market Value - INR 1485 per share (14/10/2022)
