Published on: 19 November 2025, 12:10 AM IST

Infosys Buyback 2025 – Complete Investor Guide

Infosys Limited has announced one of its largest share buybacks ever — a massive ₹18,000 crore tender offer at a price of ₹1,800 per share. The company will buy back up to 10 crore shares (10,00,00,000 equity shares), representing around 2.4% of its total equity. This buyback follows shareholder approval on November 4, 2025 and aims to enhance shareholder value by reducing share capital and improving earnings-per-share (EPS).

For retail investors, this buyback presents a strong opportunity to earn a premium. Infosys closed at ₹1,486 on 18 November 2025, meaning shareholders tendering their shares at the buyback price of ₹1,800 will receive a profit of ₹314 per share — a tax-free gain of 21.1%. This article covers the full details including record date, eligibility, acceptance ratio expectations, tax impact, and whether investors should consider tendering their shares.

Buyback Highlights

Infosys will execute the buyback via the tender offer route, where shareholders can tender shares during a fixed window. The company confirmed the following details in its official BSE filing:

• Buyback Price: ₹1,800 per share
• Buyback Size: Up to 10 crore shares
• Total Buyback Amount: ₹18,000 crore (maximum)
• Buyback Method: Tender offer under SEBI Buyback Regulations
• Funding Source: Entirely from free reserves & securities premium (no debt used)
• Promoters Participation: Promoters will NOT participate
• Record Date: 14 November 2025
• Buyback Window: 20 November 2025 – 26 November 2025

The Letter of Offer dated November 18, 2025 also confirms that Infosys has deposited ₹1,815 crore in an escrow account to comply with SEBI obligations.

Why Is Infosys Doing This Buyback?

Infosys has a long history of returning cash to shareholders through dividends and buybacks. The ₹18,000 crore program aims to:

• Enhance earnings per share (EPS) by reducing the number of shares outstanding
• Deploy excess cash reserves productively
• Signal management’s confidence in long-term growth
• Support share price during volatile market conditions

Since the promoters are not participating in the buyback, their effective ownership will slightly increase, aligning interests with retail shareholders.

Eligibility Criteria

You are eligible for the buyback if:

• You held Infosys shares in your demat account on the record date.
• You continue to hold those shares until you tender them during the buyback window.

Even if you bought shares earlier and sold before record date, you will NOT qualify.

Small Shareholder Category – Big Advantage

SEBI mandates a 15% reservation for small shareholders. A “small shareholder” is someone holding shares worth ₹2 lakh or less on record date.

This category usually enjoys a much higher acceptance ratio compared to general shareholders.

Example:

• If you hold: 100 shares @ ₹1,500 (value: ₹1.5 lakh)
• You fall under: Small shareholder category
• You may receive a higher acceptance — historically 30–70% in large IT buybacks.

Acceptance Ratio Expectations

While exact acceptance ratios will depend on total shares tendered, Infosys buybacks historically favor small shareholders.

Estimated range (based on past buybacks):

• Small Shareholders: 30% – 65%
• General Category: 10% – 20%

These are not guaranteed numbers but reasonable expectations based on previous tender offers.

Taxation on Buyback Gains

As per the Finance Act, buyback tax is paid by the company, not by shareholders.

Hence:

• No capital gains tax for shareholders
• Entire profit is tax-free in shareholders’ hands

This is one of the biggest reasons buybacks are attractive compared to normal selling.

Should You Tender Your Shares?

Here are the two strategies retail investors generally use:

✔ Option 1: Tender All Shares

This is ideal if:

• You bought Infosys at lower levels and want to lock in tax-free profit
• You expect lower acceptance but want guaranteed premium on accepted shares

✔ Option 2: Hold for Long-Term

This is ideal if:

• You are a long-term IT sector investor
• You believe the stock can outperform post-buyback
• You don’t need the short-term cash

For most small shareholders, tendering at least part of the holdings is considered beneficial.

Step-by-Step: How to Apply for the Buyback

1. Log in to your broker (Zerodha, Groww, Upstox, ICICI, etc.)
2. Go to: Corporate Actions → Buyback
3. Select “Infosys Limited”
4. Enter number of shares to tender
5. Confirm and submit

You will receive email/SMS confirmations from NSDL/CDSL.

Impact on Infosys Shareholders

• EPS Improvement: Fewer shares → higher earnings per share
• Higher Promoter Holding: Since they are not participating
• Potential Short-Term Support: Buyback price acts as a support zone

Final Verdict

The Infosys buyback is a major event for retail investors, offering:

• Attractive premium
• Tax-free profits
• Higher acceptance for small shareholders
• Long-term value enhancement

If you are a small shareholder, participating partially or fully is generally considered beneficial given past acceptance ratios and buyback premiums.

Click here to view the official BSE Filing

Data as per Infosys Buyback Letter of Offer | Published on November 19, 2025