Infosys Buyback: Investors Tender 5 Times Shares In Second Largest Buyback

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The share repurchase programme of Infosys concluded on Thursday and as against the offer of 11.3 crore shares by the second largest IT company, investors tendered over 56.5 crore shares which is more than 5 times the offer. The company's share buyback of Rs. 13000 crore commenced from November 30.

Infosys Buyback: Investors Tender 5 Times Shares In Second Largest Buyback

Iinterestingly even after the demat system is in place since long, Infosys received 2.06 lakh shares in physical format.

If shares of the investors are accepted in the buyback process which has a high chance due to higher reserved portion of 15% of the total offer size of Rs. 13000 crore, they
will be able to reap a good premium at a buyback price of Rs. 1150 as against the current market price of Rs. 1023.45. As per the SEBI guidelines, retail investor class who owned shares of the company valuing upto Rs. 2 lakhs as on the record date of November 1 were eligible for tendering their shares.

During the repurchase period, shares of Infosys moved higher by 3% and were last seen trading at Rs. 1023.45 on the BSE.

The company will deploy its excess cash pile of $2 billion for repurchasing shares.

Goodreturns.in

Story first published: Saturday, December 16, 2017, 13:46 [IST]
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