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Infosys board approves up to Rs 13,000 cr buyback offer

New Delhi: The Infosys board on Saturday approved the share buyback plan of up to Rs 13,000 crore to reward shareholders, a move that comes a day after CEO Vishal Sikka resigned citing slander by company founders.
It will buy back 11.3 crore shares at Rs 1,150 apiece, returning cash to investors at almost 25 per cent premium to the Friday's closing price of Rs 923.10, the Bengaluru-based company said in a stock exchange filing.
The company's first-ever buyback is second only to the Rs 16,000 crore share repurchase by its bigger rival Tata Consultancy Services (TCS) announced in April this year.
Infosys had said yesterday that Sikka - its first non- founder CEO of the company - had the support of the board but was forced to leave following what the board called the "misguided" campaign by founder NR Narayana Murthy.
The buyback size is 4.9 per cent of paid-up equity capital of the company. TCS offer size was 3 per cent of its paid-up equity capital, while Wipro -- which will undertake a share buyback later this year - is 7.06 per cent of the paid-up capital.
Infosys has set up a 7-member committee which includes co-chairman Ravi Venkatesan, Executive Vice-chairman Vishal Sikka and interim CEO & MD UB Pravin Rao to oversee the process of the buyback offer. The timeline and other details will be announced in due course, Infosys said.
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