The Indian multinational corporation Infosys fixes November 1, 2017, as the record date for it's up to Rs 13,000crore share buyback programme. This share buyback, which happens to be a first for the company in its 36 years long history, We will see Infosys buying back over 11.30 crore shares at Rs 1,150 apiece.
Share buybacks improve earnings per share and conjointly support share price during the period of a sluggish market condition. The larger rival Tata Consultancy Service (TCS) completed a Rs 16000Cr mega buyback offer, earlier this year. Other competitors in the market like, Cognizant, Wipro, Mindtree also made similar announcements. Along with this, Infosys has also fixed the same date for the payment of interim dividend, subject to Board decision on the same.
The company in an interview stated, “The Buyback Committee has approved and fixed November 1, 2017, to be the record date for determining the entitlement and the names of the equity shareholders to whom the letter of offer will be sent and will be eligible to participate in the buyback. The buyback proposal had been approved by the Board on August 19th and by the shareholders earlier today.” Just a day later Vishal Sikka resigned as the MD and CEO of the company after a spat with the founders.
Infosys has scheduled to announce its financial results for the July-September 2017 quarter on October 24th.
After the announcement was made, the stock made a northward move as at 11.50 am; the shares were trading at Rs 935.90, up by 1.30 percent while the broader market was trading flat.