India’s second largest software services outsourcer Infosys Ltd. today said its Rs 13,000-crore buyback offer will open on November 30 and end on December 14.
The company has received observations from the Securities and Exchange Board of India on the draft letter for the buyback, Infosys said in a stock exchange filing. The share buyback, which will be the first in the company’s 36-year long history, will see Infosys buying back over 11.30 crore shares at Rs 1,150 apiece.
This had been a long-standing demand by some of the founders and high-profile former executives, who had been pushing Infosys to return surplus capital to shareholders. Share buybacks typically improve earnings per share and return surplus cash to shareholders, while supporting share price during period of sluggish market condition.
Earlier this year, its larger rival Tata Consultancy Services completed a Rs 16,000-crore mega buyback offer. Other competitors like Cognizant, Wipro and Mindtree had also made similar announcements.
