Global software major Infosys said that the company’s promoters would participate in the proposed buyback of its equity shares….reports Asian Lite News
“Some of the members of the promoter and promoter group of the company have communicated their intention to participate in the proposed buyback,” said the IT major in a regulatory filing on the BSE.
The company’s Board on August 19 announced that it would buy back 11.3 crore shares of Rs 5 face value at Rs 1,150 per share via tender offer for an amount not exceeding Rs 13,000 crore ($2 billion).
The offer size is 20.51 per cent of the total paid-up capital and free reserves, aggregating up to 11.3-crore shares or 4.92 per cent of the equity shares.
“In terms of buyback regulations under the tender offer route, the promoters have the option to participate in the share buyback,” it said in the filing.
The promoters group, comprising co-founders and their families hold 12.92 per cent of the equity shares. Among them are Founder N.R Narayana Murthy, co-founders Nandan Nilekani, S. Gopalakrishnan, S.D. Shibulal, K. Dinesh, and N.S. Raghavan.
“The buyback is subject to approval of the shareholders by way of a special resolution through postal ballot and its record date will be decided soon,” added the filing.
The public announcement setting out the process, timelines and other details will be released in due course.
The company’s blue chip scrip closed at the end of Monday’s trading on the BSE at Rs 941.15, gaining Rs 28.65 from Thursday’s price of 912.50, but lower than the opening price of Rs 947 and a high of Rs 953.50 and a low of Rs 937.90 during the intra-trading session.
Infosys’ buyback comes a month after Wipro announced on July 20 to buyback 34.3 crore equity shares of Rs 2 each for Rs 11,000 crore ($1.7 billion) at Rs 320 per share.
Indian IT bellwether Tata Consulting Services (TCS) completed buyback of its 5.6 crore equity shares of Re 1 each on May 31 at Rs 2,850 per share, with the attractive offer oversubscribed by 221 per cent or 12.4 crore shares.
The country’s fourth largest software services firm HCL Technologies completed buyback of 3.5-crore equity shares of Rs 2 face value at Rs 1,000 per share on June 23.