INfosys buy backs 11.3 crore shares for RS 13,000 crore

Bengaluru Aug 19: A proposal was accepted. Infosys today said that it would buy back shares up to Rs 13,000 crore.

* The company has fixed price of Rs 1,150 per share.

*The company plans to buy back 11.3 crore shares or 4.92% of its equity capital.

* The company further said that the buyback represents premium of 17.73 percent and 17.92 percent on BSE and NSE, respectively,

The company has said that the board has accepted the proposal and gave its nod and the exit of Vishal Sikka former MD and CEO of the company has no effect on the board.

Yesterday investors wealth of Rs 22,000 crore in Infosys was wiped out because the shares fell down drastically.

Experts say buy back allows the companies to invest in themselves and shareholders would be rewarded in an efficient and cost-effective manner, so that the companies own shares are increased.

currently, many companies prefer buyback because

* It improves the earnings per share (EPS).
* Helps to improve return on capital.
* Return on net worth increases.
* To enhance the long-term shareholder value.
* An additional exit route to shareholders when shares are undervalued or are thinly traded.

Let's hope that company solves its internal issues fastly and plans long-term growth strategy.