TheNFAPost Podcast

India’s IT giant Infosys will be considering a proposal to buyback of its shares at its forthcoming board meeting scheduled for April 14.

The board will meet to approve and take on record the audited consolidated financial results of the company and its subsidiaries for the quarter and year ended March.

During a buyback, a company buys back shares of the company from its existing shareholders at a fixed value per share to help itself to re-absorb the ownership.

This is a method to distribute free cash flow and unlock value for the shareholders.

The buyback also shows promoters optimism about the company’s prospects. The buybacks, usually, are fixed at a price higher than what is quoted in the market.

Infosys completed its first buyback of Rs 13,000 crore in December 2017, comprising 11.3 crore equity shares at a price of Rs 1,150 per share.

It also announced a buyback in early 2019 for an amount of Rs 8,260 crore and bought back 11.05 crore shares at an average price of Rs 747.38 per equity share.


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