Bengaluru headquartered IT giant Infosys has announced its largest ever share buyback program worth Rs 18,000 crore, signalling confidence in its balance sheet and future growth prospects. Approved by the company’s board on September 11, 2025, the buyback will be carried out via the tender offer route at a price of Rs 1,800 per share a premium of nearly 19% over the prevailing market price. The move underscores the company’s ongoing strategy to reward shareholders while optimizing its capital structure.
According to the company’s regulatory filing, Infosys plans to repurchase approximately 10 crore shares, representing about 2.41% of its total paid-up equity capital. This marks the largest buyback in the company’s history and follows a series of earlier repurchase programs including buybacks in 2017, 2019, 2021, and 2022 which collectively returned thousands of crores to investors. By choosing the tender offer route, Infosys is providing all shareholders, large and small, an equal opportunity to participate at a fixed premium price.
Analysts view the announcement as a reflection of Infosys’ robust cash position and steady operational performance. The company has been generating strong free cash flows even amid global macroeconomic uncertainties. Management highlighted that the buyback aligns with its long-term capital allocation policy, balancing reinvestment for growth with returns to shareholders. “This decision reinforces our commitment to delivering consistent value to investors while maintaining a prudent and flexible capital structure,” the company said in a statement.
The Rs 18,000-crore buyback also comes at a time when Indian IT services firms are navigating a challenging demand environment in North America and Europe. While clients are scrutinising discretionary spending, Infosys has continued to win large deals and expand its cloud, AI, and digital transformation services portfolio. Market observers believe that the buyback announcement may bolster investor sentiment and help stabilize the company’s share price in the near term.
Historically, Infosys has used buybacks both as a tool to return surplus capital and as a confidence signal to the market. Its previous buyback in 2022 amounted to Rs 9,300 crore through an open-market mechanism, and before that in 2017, it executed a Rs 13,000-crore tender offer. The 2025 program doubles the scale of recent repurchases, underscoring the company’s strong liquidity position.
For shareholders, the buyback offers a chance to tender shares at a fixed premium, potentially realizing gains over the market price. However, analysts caution that the actual acceptance ratio will depend on participation levels. Investors who retain their shares may also benefit from enhanced earnings per share and return on equity after the buyback reduces the overall share count.
As one of India’s most widely held blue-chip stocks, Infosys’ decision will be closely watched across the market. The record-sized buyback reinforces a trend among Indian IT majors to deploy cash reserves through shareholder payouts amid slower global demand. With its strong fundamentals and strategic investments in new technologies, Infosys’ latest move may serve as both a vote of confidence in its own business and a boost to investor morale.