The buyback offer announced on Saturday by the Infosys board failed to boost investment sentiments as expected and the stock today extended losses further to reach three-year low price of Rs. 881 in early hours of trade today, earlier reached in August 2014. On the NSE at 12:40, the scrip is trading at Rs.887 paring early losses.
The board on Saturday made a call for a buyback offer of the size of Rs. 13,000 crores in which shares will be brought back by the company at Rs. 1150 which is a huge premium value against the current market price of the Infosys share. The buyback offer includes the total amount which the company which the company committed for returns of the shareholder after the 2016-17 March quarter.
Know if tendering held infosy shares in the buyback offer will be good for investors, here.
Soon after the scrip saw crashing as much as 13% in the Friday trading session due to unsurprising exit of Vishal Sikka from the post of MD and CEO of the compaany, LIC, the largest state run insurance company bought in a huge number of shares of the company. Also, as per the insurer's strategy, Infosys scrip has now come in the company's list of buy for the August month.
Also, several brokerages have downgraded the stock and recalibrated their profit growth and earnings forecast for the company for the financial year 2018 and 2019
In the broader markets today, the sentiment is mixed given the investor's lack of confidence in the Donald Trump's outlook in meeting his economic agenda.