In morning trade on Tuesday, shares of Infosys Ltd fell by 2.6 percent to an intraday low of Rs 781.10 apiece despite overall positive market sentiment. On Monday, after market hours, the IT giant in a regulatory filing said that is board committee has approved the closure of its Rs 8,260 crore share buyback.
Earlier this year, the proposal to buyback equity shares for an amount aggregating up to Rs 8,260 crore ("Maximum Buyback Size") at a price not exceeding Rs 800 per share, under the open market route through the stock exchanges was approved.
Infosys, in its regulatory filing, informed that the buyback commenced on 20 March 2019, and has bought back 11.05 crore equity shares at an average price of Rs 747.38 per share and deployed a little less than Rs 8,260 crores in this regard "with a balance of INR 569.97".
"Consequently, the Buyback Committee has approved the closure of the Buyback pursuant to the terms of the Public Announcement, with effect from today, i.e. August 26, 2019, prior to the expiry of six months from the Commencement Date," it said.
Further, the Indian rupee opened significantly higher 71.70 against the US dollar, 32 paise higher than the previous day's close on easing fiscal deficit concerns of the Indian government after the RBI announced its decision to transfer a record amount of Rs 1.76 lakh crore. A stronger rupee is not positive for IT company stocks that rely heavily on dollar income from their software exports.