Business / Infosys approves ₹9,200 crore share buyback at ₹1,750 per share

Mumbai: Ahead of Infosys Q4 results for the financial year 2020-21, the company announced that its board approved a share buyback worth Rs 9,200 crore or $1.2 billion at Rs 1,750 per share.   

India's second-largest IT services company announced the open market buyback at a 25% premium to the stock's closing price of Rs 1402.85 on Tuesday. 

Infosys earlier said it will consider a proposal for buyback at its meeting to be held on April 14, 2021.

For FY 21, the board also announced a final dividend of Rs 15 per share. Together with the interim dividend of Rs 12 per share already paid, the total dividend per share for FY 21 will amount to Rs 27 which is a 54% increase over FY20. With this, the company has announced total dividend of Rs 11,500 crore or approximately $1.53 billion for FY21, the company said.

During a press conference on Wednesday, Infosys MD & CEO Salil Parekh said, "We have crossed a milestone of Rs 100,000 crore in revenue in FY21".

The indicative maximum number of shares bought back would be 52,571,428 equity shares comprising approximately 1.23% of the paid-up capital of the company as of March 31, 2021, Infosys said in an exchange filing. 

For the fourth quarter ended March 31, 2021, Infosys announced net profit at Rs 5,076 crore and revenue from operations at Rs 23,611 crore.

"Our record large deal wins stand testimony to the effectiveness of this approach”, added Parekh. “A strong momentum exiting FY21, alongside a focused strategy to accelerate client digital journeys, gives us confidence for a stronger FY22”, he added.