Infosys' Rs. 9,200-cr share buyback to open on June 25
The buyback is being implemented by way of open market purchases through the Indian stock exchanges and is not extended to the promoters, promoter group and persons in control of the company, says Infosys
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New Delhi: Infosys' buyback plan up to Rs 9,200 crore is scheduled to commence from June 25, wherein the IT major has proposed to buy back shares at a maximum price of Rs 1,750 apiece.
The Board approval for the buyback was granted on April 14, 2021, and the shareholders' nod was received on June 19, 2021, at the company's 40th annual general meeting (AGM). The Bengaluru-based company has issued a public announcement on June 23 in various newspapers for the buyback of its equity shares from the open market through the stock exchange route, a regulatory filing said on Wednesday. Kotak Mahindra Capital Company Ltd was appointed as the manager of the buyback, it added. As per the proposed timeline, the date of commencement of the buyback has been set for June 25, 2021, and the last date for the buyback (whichever is earlier) would be December 24, 2021 (6 months from the date of the opening of the buyback) or when the company completes the buyback by deploying the amount equivalent to the maximum buyback size.
"Subject to the market price of the equity shares being equal to the maximum buyback price, the indicative maximum number of equity shares bought back would be 5,25,71,428 equity shares, comprising approximately 1.23 per cent of the paid-up equity share capital of the company as of March 31, 2021," the advertisement showed.
The funds for the implementation of the buyback will be sourced out of the free reserves of the company or such other source, as may be permitted by the Buyback Regulations or the Companies Act, it noted. "In terms of Regulation 16(ii) of the Buyback Regulations, the buyback is being implemented by way of open market purchases through the Indian stock exchanges and is not extended to the promoters, promoter group and persons in control of the company," it added.
If the equity shares are bought back at a price below the maximum buyback price, the actual number of equity shares bought back could exceed the maximum buyback shares, but will always be subject to the maximum buyback size, it added. Also, Infosys will utilise at least 50 per cent of the amount earmarked as the maximum buyback size for the buyback i.e. Rs 4,600 crore. Based on the minimum buyback size and the maximum buyback price, the company will purchase an indicative minimum of 2,62,85,714 equity shares.
