The information technology (IT) chief said Infosys shares rose 2.7 percent on BSE to a new high of Rs 1480 in intra-day trade on Monday, considering it would offer a buyback of fully paid equity shares. In a meeting to be held on Wednesday 14 April 2021.
“The board of the company will consider a proposal for buyback of fully paid-up equity shares of the company at its meeting to be held on April 14, 2021,” the company said in its release on the exchanges.
#Infosys board may consider fully paid equity buy back where buy back prices may be on or above 1550 rs./ Share !!!
Good news for shareholders once again. pic.twitter.com/3F0w5GaYAJ
— Chetna Parmar (@chetnaparmar631) April 11, 2021
The IT services giant has also been approved to hold a board meeting on April 13 and 14 to acknowledge and record the company’s consolidated financial results for the quarter and year ended March 31, 2021, is.
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Infosys announced buyback could be around Rs 10,000-12,000 crore and for Rs 1,650-1,670. Infosys shares closed at Rs 1,441 on the BSE on Friday.
From April 12, Indian IT companies will begin reporting their financial results for the fourth quarter and fiscal year FY21. The first company to report financial results will be Tata Consultancy Services (TCS).
Also, Infosys raised its total market valuation to Rs 6,13,854.71 crore last week, thanks to a huge contribution from IT giants like Wipro.
Infosys had $ 4.5 billion in cash and investments at the end of Q3 FY21. According to the company’s quarterly report, despite paying a half-yearly dividend of $ 687 million during the period, the company’s cash and investment remained strong.
Why Infosys had announced Buybacks
- Repurchase shares can be done for several reasons, but the most common reason is that a company’s stock is underdeveloped and wants to increase demand.
- Share buybacks reduce the number of shares in circulation, increasing the value of a stock and earnings per share (EPS).
Since 2017, among the listed IT leaders in India, both TCS and Wipro have had three buybacks each, while HCL Technologies has two. Wipro made its biggest share buyback, priced at a $ 1.7 bill in 2019. It made a buyback of Rs 2,500 crore in 2016 and Rs 11,000 crore in 2017.
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