Close on the heels of the rival TCS having completed its share buyback offer of Rs. 16000 crore, now Infosys is reported to consider the buyback proposal of its equity shares in its meeting slated for August 19.
Infosys Secretary AGS Manikanta said,""We would like to inform you pursuant to Regulation 29 (1)(b) of the Sebi (Listing Obligations and Discourse Requirements) Regulations, 2015, that the board of directors of Infosys Limited will consider a proposal for buyback of equity shares of the company at its meeting to be held on August 19, 2017".
The secretary also said that the company is closing the trading window on an immediate basis and it shall again resume from August 22.
In a statement the company said, "The board has identified an amount of up to Rs 13,000 crore (around USD 2 billion) to be paid out to shareholders during financial year 2018, in such a manner (including by way of dividend and/or share buyback), to be decided by the board, subject to applicable laws and requisite approvals, if any".
While intimating the news to the exchanges, the second-largest IT exporter of the country, did not revealed the details of the buyback offer. In April, the company had made an announcement that it shall give away Rs. 13000 crore to the company's shareholders either as dividend or via share buyback.
The Bengaluru-headquarterd company has a cash reserve of approximately US$6 billion on the company's books. Though the investors have put a constant pressure of the company, the company reiterates that its current policy is to pay a dividend to the maximum of 50% of post-tax profits of a particular FY.
The .statement further added "Effective from financial year 2018, the company expects to payout up to 70 percent of the free cash flow of the corresponding financial year in such a manner (including by way of dividend and/or share buyback) as may be decided by the board".
Early in trade, the scrip of the company rose 4% on the BSE and was seen trading at Rs. 1013.