Infosys approves the fifth repurchase worth R18,000 crore, its largest

Infosys Ltd said it would spend £ 18,000 to repurchase shares from the market, which is the biggest repurchase through India’s second largest IT services business. The company will repurchase 100 million shares at £ 1,800 each, 19.2% above their Thursday closure of £ 1509.50. Earlier, Infosys spent £ 13,000 crore in its first repurchase in 2017, followed by £ 8260 crore in 2019, £ 9200 in 2021 and £ 9300 in 2022. The repurchase was a tradition of IT services businesses that returned the excess. TCS and Wipro have both participated in three repurchases over the past five years. TCS has a declared policy of returning 80-100% of free cash flow to shareholders, while HClTech has a target to return a minimum of 75% of net income to shareholders. In this, Infosys also corresponds to the biggest repurchase by an IT firm, announced in 2022 by Tata Consultancy Services, when he tried to repurchase shares worth £ 18,000. While TCS then tried to buy back 1.08% of its shares, Infosys now repurchases up to 2.41%. “The above (Infosys) repurchase is higher than our expectation of £ 12,000-18,000,” says Amit Chandra, Vice President of HDFC Securities. Similarly, Kotak Institutional Securities expected the repurchase size to be lower, with the estimate of a £ 13,560 crore repurchase, as indicated on its website. According to Kotak, the repurchase of undervaluation indicates. “The Infosys shares dropped by 24% annually in 2025, asking management to act,” the brokerage firm said in a note on Wednesday. Promoters owned 14.61% of the Infosys at the end of June 2025. Foreign Institutional Investors (FIIs) owned 31.92%, compared to 32.89% in March 2025, which according to Kotak analysts indicated ‘cautious sentiment’. Domestic Institutional Investors (DIIs) owned 39.6%, while mutual funds owned the remaining fifth of the shares in the company. The repurchase is in line with Infosys’ declared policy of returning cash to shareholders. “Effective from the financial year 2025, the company expects to continue its policy to return about 85% of free cash flow cumulatively over a five-year period by a combination of semi-annual dividends and/ or repurchase of stocks/ special dividends, subject to applicable laws and required approval, if any,” the company’s policy of the Company. Last year, Infosys ended with free cash flow of $ 4.1 billion; If it reports a similar cash flow to FY30, it would amount to about $ 17.4 billion distributed to shareholders in the next five years. The repurchase of Infosys comes at a time when investors were lukewarm. Each of the Top Five IT -Outsourcers has reported a decline in share price since the beginning of the year. TCS, Infosys, Hcltech, Wipro and Tech Mahindra saw their shares fall 23.75%, 19.74%, 23.48%, 15.91%and 10.84%respectively. An IT industry analyst said that other IT -outsourcers could also participate in repurchase. “The macroeconomic condition is not very stable and the demand is low. In such times, it will be difficult for businesses to invest in new technologies because the demand itself is low and gets less work,” an analyst in Mumbai said on condition of anonymity. The growth has slowed over the past few years because it is Big five. TCS, Infosys, and HCL Technologies Ltd grew by 3.78%, 3.85%and 4.3%respectively on an annual basis. In contrast, Wipro Ltd and Tech Mahindra Ltd reported a turnover of 2.72% and 0.21% respectively. Infosys is still cautiously optimistic about the future. The Bengaluru-based IT services enterprise increased the lower end of its FY26 lead in July to 1-3%, higher than the growth to 3% that it projected in April, which was the slowest income execution in at least a decade. Constant currency does not take into account the exchange rate fluctuation. “Despite the margin compression, the company maintains a strong liquidity and the consistent win -win,” the Kotak note says.