Infosys on September 11 announced that its board has approved a share buyback proposal worth Rs 18,000 crore, its largest ever. The buyback price has been set at Rs 1,800 per share. This is the first buyback of shares announced by Infosys since 2022, when the company had agreed to a buyback proposal of Rs 9,300 crore.

Buyback refers to a corporate action where a company repurchases its own shares from the existing shareholders. This was earlier done through open market or tender offer route. Under the open market mechanism, the company buys back its shares actively from sellers on stock exchanges. Notably, market regulator SEBI has now completely phased out this method. As part of the tender offer route, the only way which is now available, the shareholders submit their tender, which is sell their shares within a stipulated time.

In an exchange filing released on September 12, Infosys said that it will receive some exemptive relief from the US SEC as a result of the share buyback due to "conflicting regulatory requirements between Indian and U.S. laws for tender offer buybacks".

The Bengaluru-based IT major had cash and cash equivalents of over Rs 42,000 crore and free cash flow of over Rs 20,000 crore in FY25, giving it ample headroom for shareholder payouts. The buyback will be funded from its free reserves, in line with its capital allocation policy of returning 85 percent of free cash flow over five years through dividends and repurchases. 

Infosys shares gained more than 6 percent in the past five days, and over 8 percent in the past one month. The stock has fallen nearly 3 percent in the past six months, and is down more than 18 percent in 2025 so far.