Infosys Buyback 2025: Everything You Need to Know
Infosys Limited, India's second-largest IT services company, has announced its fifth and largest-ever share buyback program worth ₹18,000 crore. This comprehensive guide breaks down everything investors need to know about participating in this historic buyback.
Buyback Size: ₹18,000 crore
Buyback Price: ₹1,800 per share
Number of Shares: Up to 10 crore equity shares (2.41% of total paid-up capital)
Record Date: November 14, 2025
Premium Offered: Approximately 20% above current market price
What is a Share Buyback?
A share buyback (or share repurchase) is when a company purchases its own shares from existing shareholders. Companies typically do this to:
- Return surplus cash to shareholders
- Boost earnings per share (EPS)
- Signal confidence in the company's future
- Improve shareholder value
- Optimize capital structure
Eligibility & Participation
Who Can Participate?
All shareholders holding Infosys equity shares in their demat or physical form as of November 14, 2025 (Record Date) are eligible.
Small Shareholder Reservation
The buyback offers special benefits to small shareholders through a 15% reservation. Small shareholders are those whose total shareholding value is ₹2 lakh or less on the record date.
How it works:
Small shareholders receive the higher of:
- Their proportionate entitlement, OR
- 15% of the total shares being bought back
This ensures better acceptance ratios for retail investors.
How to Participate
Step 1: Hold Shares on Record Date
Ensure Infosys shares are in your demat account by November 14, 2025 (You need to buy and hold the shares on 13th November).
Step 2: Submit Your Tender
The buyback window will be declared by the company.
- Login into your Kotak Neo.
- Select Invest Option in bottom left corner
- Navigate to the buyback section
- Select Infosys and submit your tender offer
Step 3: Await Acceptance
Since only 2.41% of shares are being bought back, not all tendered shares will be accepted. The acceptance ratio determines how many of your shares will be purchased.
Step 4: Receive Payment
Accepted shares will be credited with payment, and unaccepted shares will be returned to your demat account.
New Tax Rules (Major Changes in 2025)
Critical Tax Changes from October 1, 2024
Under the Finance (No. 2) Act 2024, the tax treatment of buybacks has changed significantly:
Old Tax Regime (Before Oct 2024)
- Company paid 20% buyback tax
- Shareholders received tax-free proceeds
New Tax Regime (From Oct 2024)
- No tax on the company
- Shareholders pay tax at their income tax slab rate
- Amount received treated as "deemed dividend" under Section 2(22)(f)
Should You Participate? Key Considerations
✅ Reasons to Participate
- Immediate Premium: 20% higher than current approx. market price
- Guaranteed Exit: Accepted shares sold at predetermined price
- Small Shareholder Advantage: Better acceptance ratios
- Cash Realization: Convert equity to cash without market risk
What is Acceptance Ratio?
Since only 2.41% of shares are being bought back:
- Your entire tender may not be accepted
- Acceptance ratio determines actual shares sold
- Small shareholders typically get better ratios (15% reservation)
Example:
If you tender 100 shares and acceptance ratio is 30%, only 30 shares will be bought back.