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Infosys Shares Surge as Promoters Opt Out of Rs 18,000 Crore Buyback

Mumbai, October 26, 2023 – Shares of Infosys (INFY.NS) experienced a significant jump on Thursday, reaching a high of Rs 1,543.90, after promoters, including prominent figures Nandan M. Nilekani and Sudha Murty, announced their decision not to participate in the company’s Rs 18,000 crore share buyback program. This decision has fueled investor confidence, making Infosys the top gainer on the Nifty IT index, Sensex, and Nifty benchmarks.

Infosys had announced the buyback plan, its largest ever, on September 11th, setting the buyback price at Rs 1,800 per share, a premium of over 19% from the stock’s price at the time of the announcement. A share buyback is when a company purchases its own outstanding shares to reduce the number of shares available on the open market, thereby increasing the value of the remaining shares.

The company revealed on October 22nd that its promoters, holding a 14.30% stake as of September 30, 2025, had opted out of the buyback. Analysts suggest this move signals strong confidence in Infosys’ future performance and increases the attractiveness of the buyback for retail investors. The promoters not participating in the buyback is being perceived as bullish indicator and adds to overall investor bullishness in the IT sector.

“Promoters not cashing out signals confidence in the business prospects, and adding to the overall investor bullishness in IT sector,” Anita Gandhi, founder and head of institutional business at Arihant Capital Markets told Reuters.

While Infosys shares have risen over 6% in the past five days, the stock is still down over 18% year-to-date. The company’s recent Q2 FY26 results, reported on October 16th, showed a 13.2% year-on-year increase in net profit to Rs 7,364 crore and an 8.5% rise in revenue from operations to Rs 44,490 crore.

Infosys has also announced an interim dividend of Rs 23 per equity share, with October 27th set as the record date for eligibility. The company reported a strong operating margin of 21% for the quarter, with free cash flow generation reaching $1.1 billion.

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