Infosys Ltd shares fell 2.7% in intraday trade on Tuesday, i.e. 27 August, after the company said it will be considering closure of the Rs 8,260 crore buyback offer.
At 10:54 am, the Infosys stock was trading at Rs 784.10, down 2.3%, after hitting an intra-day low of Rs 781.10. Infosys shares have returned over 13% to investors in the last one year.
Infosys notified stock exchanges on Monday after market hours that its board committee is considering closure of the buyback offer as the company has utilised almost the entire amount approved for the issue.
“The Buyback Committee of the company will, on 26 August 2019, consider proposals, including but not to limited to, the closure of the buyback, pursuant to the terms of the public announcement, in view of the fact that the company has utilised 99.999999% of the maximum buyback size (excluding transaction costs),” Infosys said in a regulatory filing.
The outcome of these considerations will be duly notified to the stock exchanges in accordance with the applicable provisions, added Infosys.
Infosys also informed exchanges that it has bought back 110.5 million equity shares at an average price of Rs 747.38 apiece during the buyback offer that began on 20 March 2019.
The IT major had announced the buyback offer in January for an amount aggregating up to Rs 8,260 crore at a price not exceeding Rs 800 per equity share. In a regulatory filing on 16 August, Infosys had said it had extinguished 7.6 million fully paid-up equity shares bought back from 30 July 2019 to 6 August 2019.
A buyback is a scheme by which a company repurchases a certain amount of its outstanding shares. Once taken back, these shares are extinguished or cancelled by the company. Typically, companies that have excess cash in their kitty, with no specific investment or other deployment requirements for the same, may consider buyback offers.
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