Infosys to buy shares at a 25% premium over the current price; approves Rs 9,200 repurchase plan

0
49

Infosys today approved a share buyback. (Image: REUTERS)

Software services giant Infosys said today that its board of directors has approved a buyback of Rs 9,200 crore of shares on the open market. The company will repurchase shares at a maximum of Rs 1,750 each, a 25% premium over the current market price of Rs 1,398 each. The takeover announcement came with the company’s financial results where it reported a jump in net profit to Rs 5,076 crore in the January-March quarter, from 4,321 crore in the same period last year.

The approved buyback plan of Rs 9,200 crore is less than 15% of the total paid-up share capital. At the end of the repurchase at the maximum price, Infosys will repurchase 5,25,71,428 participation shares.

READ  TCS, Sensex's best loser; why TCS stock is down despite a 15% increase in net profit

This is the third takeover announced by Infosys in five years. Earlier in December 2017, the company repurchased 11.3 crore of shares at a price of Rs 1,150 per share for Rs 13,000 crore. In August 2019, Infosys repurchased 11.05 crore of shares for an average of Rs 757.38 per share as part of its buyout offer of Rs 8,260 crore. So far this year, Tata Consultancy Services and Wipro have finalized their share buybacks.

The company’s revenue stood at Rs 26,311 crore at the end of the January-March quarter, compared to Rs 23,267 crore recorded in the same period last year. However, this does not match Bloomberg’s estimates. The company’s EBIT margin was 24.5%. Infosys said it added 130 customers during the period under review, bringing its total customer list to 1,626.

READ  Infosys, Wipro, Bharti Airtel, Sterlite Technologies, HDFC Bank, Coal India shares at a glance

Also Read: Infosys Declares Final Dividend Of Rs.15 Per Share; Q4 results in line with estimates, net profit up 17% year on year

“We have crossed a milestone of Rs 1 lakh crore in turnover in FY21. Our intense focus on client relevance, growing our digital portfolio with differentiated capabilities like Infosys CobaltTM and employee empowerment have helped us become a preferred ‘partner of choice’ for our global clients. Our big record transaction is a testament to the effectiveness of this approach, ”said Salil Parekh, CEO and MD.

For FY22, EBIT margin forecast is 22-24%, while revenue growth forecast of 12% -14% at constant exchange rate has been announced. An operating margin forecast of 22% -24% for the current financial year was provided by Infosys.

READ  Reliance Industries lags behind mutual funds in March; fund managers sell almost 90 lakh stocks

Get live stock quotes for BSE, NSE, US market and latest NAV, mutual fund portfolio, see latest IPO news, top performing IPOs , calculate your tax using the income tax calculator, know the best market winners, the best losers and the best equity funds. Like us on Facebook and follow us on Twitter.

The US Express News is now on Telegram. Click here to join our channel and stay up to date with the latest news and updates from Biz.

.

LEAVE A REPLY

Please enter your comment!
Please enter your name here