Do you own this blue-chip IT stock? Get ready for a bonanza

resr 5paisa Research Team

Last Updated: 15th December 2022 - 03:08 pm

Listen icon

If you are an Infosys shareholder, you may soon have a reason to rejoice.

The software services company on Monday said that its board of directors would consider a buyback of shares on Thursday, when it announces the earnings for the quarter ended September 30.

While there is no clarity on the price at which Infosys will buy the shares back, the price would most likely be above the prevailing market price.

But why is Infosys buying shares back?

As of June end, the company's cash and equivalents were at Rs 13,982 crore and it does not have too many avenues to deploy this money. Hence, it is rewarding its shareholders with a buyback. 

When was the last time Infosys bought shares back?

The software major conducted a share buyback of shares in September 2021 and bought back shares worth Rs 9,200 crore through the open market.

But how has the counter performed so far this year?

On a year-to-date basis, shares of Infosys have lagged behind Nifty50. The stock has fallen over 15 per cent, whereas the Nifty50 has lost just 3 per cent. Also, the shares are down almost 25% from the one-year high touched in mid-January.

Does the market still need some important details about the buyback apart from the price itself?

Yes. Dalal Street would be keen to know if the mode of buyback will be open market or the tender offer route.

How do you rate this article?
Characters remaining (1500)

FREE Trading & Demat Account
+91
''
By proceeding, you agree to our T&Cs*
Mobile No. belongs to
hero_form

Indian Stock Market Related Articles

Top Growth Stocks Trading at a Discount

by 5paisa Research Team 4th Nov 2024

Best Gold ETFs in India

by 5paisa Research Team 4th Nov 2024

Best Corporate Bonds in India

by 5paisa Research Team 4th Nov 2024

Top 10 Best Government Bonds in India

by 5paisa Research Team 4th Nov 2024

Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. For detailed disclaimer please Click here.

Want to Use 5paisa
Trading App?