Infosys Share Buyback, India’s biggest-ever ₹18,000 crore repurchase, offers ₹1,800 per share through a tender offer. With promoters opting out and new tax rules treating proceeds as deemed dividends, investors must understand acceptance ratios and tax implications before participating.
A Historic Infosys Share Buyback Reshapes India’s Capital Market Landscape
TheInterviewTimes.com, November 15, 2025: Infosys has launched the largest Infosys Share Buyback in Indian corporate history, valued at ₹18,000 crore. This landmark move has captured wide attention among investors, fund managers, and analysts as the company strengthens its capital-return strategy amid global IT sector headwinds.
The repurchase will buy back 10 crore fully paid-up equity shares, representing 2.41% of Infosys’s paid-up capital. Offered at a fixed price of ₹1,800 per share, the Infosys Share Buyback provides an 18–19% premium over market prices prevailing at announcement.
All shareholders holding Infosys stock on or before November 14, 2025, qualify for participation. Additionally, 15% of the buyback quota is reserved for small shareholders holding shares worth up to ₹2 lakh.
This tender-offer-based Infosys Share Buyback not only returns surplus cash to investors but also positions Infosys as a benchmark-setter in large-scale capital deployment.
Promoters Opt Out, Enhancing Retail Investor Acceptance
In a significant development, Infosys promoters — including N.R. Narayana Murthy, Nandan Nilekani, Kris Gopalakrishnan, and Sudha Murty — have chosen not to participate in the buyback. Their combined stake of 13.05% will marginally increase after the buyback because the total share base shrinks.
Their non-participation has two crucial implications:
- Higher acceptance ratio for retail and institutional shareholders.
- Strong signalling effect, reflecting promoter confidence in Infosys’s long-term growth trajectory.
Market analysts interpret this abstention as a strategic endorsement of the company’s fundamentals. With promoters stepping aside, public shareholders stand to gain proportionally more from the Infosys Share Buyback.
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New Tax Rules: Buyback Proceeds Classified as Deemed Dividends
One of the most impactful aspects of the Infosys Share Buyback is the new tax regime effective 1 October 2024. Under revised Section 2(22)(f) of the Income Tax Act, buyback proceeds are now treated as deemed dividends.
Key Tax Implications for Investors
- The entire payout from the buyback is taxed at individual slab rates.
- Entities face a flat 30% tax on the buyback amount.
- Non-resident shareholders incur a 20% withholding tax, plus surcharge and cess.
- Shareholders can treat the original purchase price as a capital loss, useful for offsetting gains elsewhere.
This tax overhaul reduces the relative attractiveness of the Infosys Share Buyback for high-income individuals, as the entire amount becomes taxable. Investors with significant capital gains may still benefit from the offset provision.
Experts caution that careful analysis is needed before tendering shares, especially for those in the 30% slab.
Strategic Positioning: Infosys Strengthens Investor Value
The Infosys Share Buyback aligns with a broader strategy adopted by leading Indian IT companies to return surplus cash amid a cautious global demand cycle. The unprecedented scale of this buyback underlines Infosys’s strong balance sheet, high liquidity, and confidence in sustainable future earnings.
Promoters’ non-participation amplifies investor sentiment, reaffirming long-term faith in Infosys’s technological leadership, client demand pipeline, and governance stability.
This repurchase is expected to marginally shore up promoter ownership while enhancing value per share for remaining shareholders post-buyback.
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How Shareholders Can Participate in the Infosys Share Buyback
Participation is enabled via the tender offer mechanism. Eligible investors must:
- Hold Infosys shares in their demat account as of November 14, 2025.
- Submit shares through their stockbroker during the buyback window.
- Receive ₹1,800 per accepted share, with unaccepted shares returned to the demat account.
Small shareholders benefit from a dedicated 15% reservation, and acceptance ratios are likely to improve due to promoter abstention.
Key Takeaways
- The Infosys Share Buyback, valued at ₹18,000 crore, is the biggest repurchase in India’s history.
- The fixed price of ₹1,800 per share offers a substantial premium to market rates.
- Promoters not participating significantly increases retail acceptance.
- New tax rules classify proceeds as deemed dividends, reducing post-tax returns.
- The buyback strengthens Infosys’s capital-return strategy and boosts long-term investor confidence.