Infosys Ltd. will initiate its first buyback in three years, which is almost double the size of the earlier two buybacks and higher than market estimates.

While the buyback is valued at Rs 18,000 crore, representing 10 crore shares or 2.4% of equity, it is not the highest in terms of equity percentage. In 2017, the Bengaluru-headquartered company repurchased 4.9% equity.

The buyback price of Rs 1,800 is a 19% premium to the current market price. The record date, which will determine eligible shareholders for the Infosys buyback, is yet to be announced.

The share repurchase process may take three to four months to complete, based on historical data. The stock has over 25.79 lakh owners.

According to NDTV Profit calculations, Infosys spends an average of 30% cash on buybacks. It buys back 14-15% of net worth. First-quarter cash and cash equivalents are at Rs 45,200 crore, while its net worth is at Rs 95,350 crore. The tech giant did its last buyback in October 2022.

The current buyback is a part of the capital return policy Infosys announced in 2024 of returning 85% of free cash flow over five years through dividends and repurchases.