The board of IT major Infosys is set to consider a proposal for a buyback of fully paid-up equity shares on September 11.
The outcome of the meeting would be shared with stock exchanges following the meeting on Thursday, the company said in a notice to the exchanges.
In 2022, the board of Infosys had approved a proposal to buy back shares from shareholders (excluding promoters, promoter group, and persons in control) for up to ₹9,300 crore at a maximum price of ₹1,850 a share from the open market.
In that offer, the company bought back 6.04 crore shares for ₹9,300 crore. The highest price at which the shares were bought back was ₹1,623.90 while the lowest price was ₹1,468.10, it said in post-buyback disclosure.
Infosys shares closed at ₹1,436.10 on the BSE, down 0.59 per cent on Monday, marking a 15.6 per cent decline over the past six months. The Nifty IT index also fell 0.74 per cent, with Coforge, Infosys, and Wipro among the laggards.
However, according to DSP Mutual Fund, while the global IT sector appears overheated, Indian IT firms like Infosys remain relatively well-positioned. Despite corrections over the past three years, fundamentals remain strong, with current ROEs at or above long-term averages and valuations near historical norms.
“For leaders such as Infosys and TCS, earnings growth over the past three years has outpaced shareholder returns, signaling significant de-rating,” DSP said in a report. “This is largely due to the absence of ‘AI froth’ in Indian IT majors. Unlike global peers, they have focused on enabling GenAI and maintaining strong Total Contract Value pipelines. While the IT sector could become an absolute play if prices correct further, for now it remains a relative play.”