Infosys to consider share buyback proposal on October 13

IT major Infosys on Monday said it would consider a proposal for share buyback on Thursday when it is scheduled to report its quarterly earnings results.

"The board of the company will consider a proposal for the buyback of fully paid-up equity shares of the company at its meeting to be held on October 13, 2022, in accordance with the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018," Infosys said in a regulatory filing.

Under a share buyback or repurchase, a company buys back its shares from investors or shareholders. It is usually seen as an alternative, tax-efficient way to return money to shareholders.

Also Read | Infosys former HR claims IT company asked her not to hire people with Indian origin, mothers

Infosys would also announce second quarter (Q2) results on October 13.

The Q2 earnings season started on a higher note this year. "The Q2 results season has started off well with decent numbers from TCS which have beaten street estimates on most parameters. This and the news of buyback from Infosys will impart resilience to the IT segment," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Last year, the Infosys board approved a Rs 9,200 crore buyback plan, which commenced on June 25, 2021, and ended on September 14, 2021.

Also Read | Infosys, Wipro, Capgemini: Why top IT firms are delaying onboarding

Meanwhile, shares of Infosys were trading 0.46 per cent higher at Rs 1,469.40 in early deals on BSE today. On NSE, the stock rose 0.50 per cent to trade at Rs 1,470 in opening session. While Indian equity benchmarks plunged in opening deals, extending their fall for the third straight session.