Infosys is going to buy its own shares from shareholders under the buyback. For this, the company will spend a total of Rs 18000 crore. Let us know that earlier in the company 2017, 2019, 2021 and 2022, the shares have also been renovated.
Infosys stock price: The country’s leading IT company Infosys made a big announcement at the board meeting held on September 11. The company has said that it is going to buy about 10 crore shares from the existing shareholders under the buyback at a price of Rs 1800 per share. How much does this buyback offer matter for 26 lakh shareholders of the company. 10 Know the whole matter in questions and answers.
Question No. 1- What is a buyback offer?
Answer- Buyback is a corporate action, under which a company buys its own shares back from shareholders. Typically, companies redeem them at a higher price than the current market price. In buyback, the company can buy shares through tender offers or from direct open market. Currently, Infosys is buying through tender offer. In this, shareholders get a chance to sell shares at a higher price than the market price.
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Question No. 2- Why do companies bring buyback offers? What is their benefit in this?
Answer- When a company feels that the price of its shares is being raised in the market. That is, the price of stocks currently running, it should be very high in real. Apart from this, many times the company feels that it has extra capital, so that it wants to invest its share and invest the money in the company, so that in future, investors’ trust and stock price increases in future shares.
Question No. 3- What is the benefit of companies from share buyback?
Answer- When companies buy shares from the market, the number of stocks in the market decreases, but it increases each share earnings (earning per share), causing the share price to go up rapidly in future. Along with this, through buyback, the company shows investors that they are completely confident about the company’s future. This encourages investors to invest in the stock.
Question No. 4- Has the buyback offer earlier brought Infosys?
Answer- Infosys was listed in 1993. Since then, this is the 5th buyback offer of the company. The company last brought a buyback offer in 2022 and then bought shares worth Rs 9300 crore at the price of Rs 1850. This was done with the buyback open market route. At the same time, in 2017, Infosys had a buyback of Rs 13000 crore.
Question No. 5- How much does the existing shareholders of Infosys benefit from this buyback?
Answer- Infosys has said that it will buyback at the price of Rs 1800 per share. At the same time, the price of its stock is currently around Rs 1525. That is, even in the current sense, investors are getting a profit of about 19%.
Question number 6- How was Infosys performed in the first quarter of FY 2025-26?
Answer-On the annual basis, Infosys made a net profit of Rs 6921 crore during the first (April-June) quarter of Financial Year 20256-26. At the same time, it was Rs 6368 crore during the same quarter of last year. As of 12 September, the total market cap of the company is around Rs 6,34,915 crore.
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