Infosys buys back over 11 crore equity shares under its Rs 13,000 crore buyback scheme. With this, the IT services major completes its Rs 13,000 crore buyback programme.
This buyback programme of Infosys had participation from Sudha Gopalakrishnan, Rohan Murty, and LIC among others.
Infosys’s buyback scheme, which is a first in the company’s over three decade history, commenced on November 30 and closed on December 14.
Infosys said in a statement, “(A total of) 11,30,43,478 equity shares were bought back under the Buyback at a price of Rs 1,150 per equity share. The total amount utilized in the Buyback is Rs 13,000 crore excluding transaction costs.”
The buyback scheme had a participation from Life Insurance Corporation of India, Singapore government, Sudha Gopalakrishnan (wife of co-founder S Gopalakrishnan) and Rohan Murty (son of co-founder NR Narayana Murthy’s son) among others.
It showed that of all the equity shares tendered in the buyback, 5.41 per cent were by LIC and 2.18 per cent by Singapore government. Also, 5 lakh shares of Sudha Gopalakrishnan and 13.92 lakh shares held by Murty were accepted under the buyback.
On the other side, the founders and families classified as promoters group held 29.28 crore shares, or 12.75 per cent, in Infosys at the end of September 2017.
As per the reports, after the buyback, the promoter group now holds 12.90 per cent share. The buyback had been a long-standing demand by some of the founders and high-profile former executives, who have been pushing Infosys to return surplus capital to shareholders.
The share buybacks usually improve earnings per share and return surplus cash to shareholders, while supporting share price during the period of sluggish market condition.
