Infosys Buyback Explained, ₹18,000 Crore Offer, Record Date, and Why Promoters Aren’t Participating

Infosys has announced its latest share buyback worth ₹18,000 crore, offering to repurchase shares at a price of ₹1,800 per share through the tender route. While buybacks are not new for the tech giant, what has caught investors’ attention this time is the decision of the promoters not to participate. Infosys stock gained over 4% today following the announcement. Let’s break down what this means, why they’ve chosen to stay out, and what it could signal for shareholders.

Infosys Buyback Plan Explained

1. Offer Details: Infosys will buy back up to 10 crore shares (2.41% of equity capital) at ₹1,800 per share, totaling ₹18,000 crore. The buyback will be conducted through the tender offer route on NSE and BSE.
2. Record Date: The record date, which decides who can participate, is yet to be announced. Only shareholders holding Infosys shares on that date will be eligible.
3. Eligibility: The offer is open to all shareholders, with 15% reserved for small investors (holding shares worth up to ₹2 lakh). The tender window will stay open for five working days once announced.
4. Funding & Objective: The buyback will be funded entirely from Infosys’s reserves, with no borrowings. It’s part of the company’s policy to return 85% of free cash flows through dividends and buybacks over five years.

Promoters’ Decision: No Participation

Infosys has officially confirmed that the promoters and promoter group will not participate in this buyback. This was communicated through a series of letters between September 14 and 19, 2025, by members of the founding families, including Narayana Murthy, Nandan M Nilekani,Sudha Gopalakrishnan and Rohan Murthy.

Current Promoter Shareholding

As of the public announcement in September 2025:

• Total promoter shareholding: 54.20 crore shares
• Equivalent to 13.05% of Infosys’s total equity capital

Even though they’re not tendering any shares, the promoters’ stake will slightly rise to 13.37% post-buyback, as the total number of outstanding shares will reduce after the company buys back shares from public shareholders.

Key Numbers at a Glance

Why Promoters Are Not Selling

Although Infosys hasn’t explicitly stated why the promoters decided not to tender shares, the intent is quite clear from the context.

1. No change in control: Infosys confirmed that the non-participation will not lead to any change in management or control. The public shareholding will remain well above SEBI’s 25% requirement.
2. Signal of confidence: By not selling even a small portion of their holdings, the founders appear to be reaffirming faith in the company’s long-term growth story.
3. Focus on rewarding public shareholders: Since promoters aren’t participating, the entire ₹18,000 crore pool benefits non-promoter shareholders, improving their relative ownership and value per share.

How the Buyback Works for You

If you hold Infosys shares, here’s how you can take part:

1. Check the Record Date: Only shareholders as of the Record Date (yet to be announced) will be eligible.
2. Tender through your broker: During the buyback window (usually five working days), you can offer your shares through your broker on the NSE/BSE platform.
3. Wait for acceptance and payment: If your shares are accepted, the money is credited directly via the clearing corporation. Any unaccepted shares are returned to your demat account.

The Bigger Picture

This is Infosys’s fifth buyback since 2017, showing its consistent approach to shareholder returns. The company’s healthy cash reserves, combined with stable growth, allow it to distribute value without straining future plans. For retail investors, this buyback offers a potential short-term gain (if accepted at ₹1,800 per share) and a long-term signal of confidence from promoters and management. For the company, it’s a way to improve capital efficiency and reward shareholders, while the non-participation of promoters helps maintain market stability and governance transparency.

Final Thoughts

The non-participation of Infosys promoters in this buyback isn’t just a technical detail — it’s a statement. It tells the market that the people who built Infosys believe in its future and prefer to stay invested rather than cash out. For investors, it’s both an opportunity and a message — Infosys continues to share its success with shareholders, without diluting promoter commitment. In a market often driven by short-term sentiment, that’s a reassuring signal of long-term conviction.

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