Country’s second-largest IT services firm ‘Infosys Ltd’ stock gained as much as 3% to hit a six-year high on Monday as its board would consider a share buyback programme on 14 April.
Regulatory filing
“The Board of the Company will consider a proposal for buyback of fully paid-up equity shares of the Company at its meeting to be held on April 14, 2021, in accordance with the Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018.”
Q3 Result and dividend
The board will meet to approve and take on record the audited consolidated financial results of the company and its subsidiaries for the quarter and year ending March 31, 2021.
It will also recommend a final dividend for the financial year ending March 31, 2021.
Bloomberg analyst estimated
The firm is expected to post a revenue of ₹ 26,397.90 crore, while net profit is estimated at ₹ 5,168.30 crore.
Similar events in past
In 2017 and 2019, Infosys bought back shares worth ₹13000 crore and ₹ 8260 crore at ₹ 1150 and ₹ 800 per share respectively.
In September 2019 and December 2017, Infosys had completed ₹8,260 crore and ₹ 13,000 crore buyback.
What is Buyback?
Buyback refers to the repurchasing of free-float shares of a company by the promoters.
In a buyback issue, the company pays its shareholders a fixed value per share and re-absorbs that portion of its ownership previously distributed among public and private investors.
The process enables the repurchase of shares from shareholders, usually at a higher price than the market price.
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