- By Shreyansh Mangla
- Tue, 09 Sep 2025 02:26 PM (IST)
- Source:JND
Infosys Buyback: Infosys shares price jumped 5 per cent on Tuesday amid the tech giant's buyback announcement. Following a nearly 25 per cent drop in its stock price over the past year despite positive financial results, the IT firm has decided to buy back its shares, a decision the board took on Thursday. This is the company's first buyback in three years. Infosys is considering a share buyback to return excess cash to its shareholders in the hope that it will boost its stock prices amid a challenging period for the IT sector.
Infosys may reportedly spend Rs 13,500 crore on its buyback to be held on September 11, 2025. If approved, this would be the fifth time Infosys has done a buyback. In 2022, Infosys had bought 50 million shares from the open market. This was very similar to what they did in 2021, 2019 (with two rounds), and 2017, buying millions of shares each time.
Infosys stock prices have witnessed a drastic drop from their highest point this year, falling from 28 per cent to a low of 24 per cent. It is not just Infosys, the whole IT sector has been the worst-hit sector in the stock market today, falling by a massive 19 per cent this year.
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The massive underperformance has been attributed to Trump tariffs, geopolitical tensions, and low profit growth. Foreign portfolio investors are selling their shares in the IT companies, shrinking their holding by over 27 percent in a course of six months, from the end of 2024 till July 2025.
The buybacks come as a surprise to analysts, as the recent GST cuts no longer make them a lucrative option since the tax benefit has been removed and investors have to pay taxes according to their income levels. Therefore, buybacks have become a less appealing option for many companies nowadays.
