Infosys shares climbed as much as 5 percent on Thursday, October 23, 2025, after the company revealed that its promoters would not join the massive 18,000 crore rupee share buyback. This move by key figures like Nandan Nilekani and Sudha Murty signals strong faith in the firm’s future, boosting investor mood and pushing the stock price higher amid a positive market trend.
Why Promoters Chose to Opt Out
The decision from Infosys promoters came in letters sent between September 14 and 19, 2025. They hold a combined 13.05 percent of the company’s shares as of September 30, 2025. By staying out of the buyback, these insiders show they believe in long-term growth rather than cashing in now.
This choice often means good news for other shareholders. It can raise the entitlement ratio for retail investors, giving them a bigger slice of the buyback pie. Market watchers see this as a vote of confidence, especially in a year when tech stocks face ups and downs from global economic shifts.
Analysts point out that promoters skipping buybacks has happened before in Indian firms. For example, similar moves by leaders in other IT giants have led to stock gains in the past. Here, it fits with Infosys’ steady push into AI and digital services, areas where the company has invested heavily this year.
Key Details of the Record Buyback
Infosys announced this buyback in September 2025, marking its largest ever. The plan aims to repurchase up to 10 crore shares at 1,800 rupees each. That price offers a 19 percent premium over the closing price just before the reveal.
The buyback uses a tender offer route, open to all eligible shareholders except the promoters. Important dates like the record date and entitlement ratio are still pending. Once set, they will decide how many shares each investor can sell back.
Here are some core facts about the buyback:
- Total value: 18,000 crore rupees
- Shares to buy: Up to 10 crore
- Price per share: 1,800 rupees
- Premium offered: 19 percent over recent close
- Method: Tender offer
This step follows Infosys’ pattern of returning cash to shareholders. The company has done five buybacks since 2017, totaling over 50,000 crore rupees. Each time, it aimed to boost earnings per share and reward loyal investors.
How the Market Reacted Right Away
Trading opened strong on October 23, with Infosys shares hitting 1,546.5 rupees, up 4.6 percent from the previous close. This made it a top gainer on the Nifty 50 index, which rose 0.78 percent overall. The IT sector index jumped 2.4 percent, helped by this news.
Investors cheered the promoters’ opt-out because it avoids diluting their stake. At the end of September 2025, promoters owned 14.3 percent, down slightly from earlier quarters. Their decision keeps that holding intact while letting others benefit more.
Social media buzzed with positive takes. Many users on platforms like X praised the move as smart strategy, noting how it could improve retail chances in the buyback. Stock forums echoed this, with talks of potential price climbs if global tech demand stays firm.
Recent Company Results and Challenges
Infosys reported solid September quarter earnings, beating most estimates. Revenue grew 4 percent year-over-year, driven by deals in banking and healthcare. Yet, the firm only lifted the lower end of its full-year growth guide to 2 to 3 percent, sparking some worry.
Challenges include slower client spending due to economic uncertainty. Rivals like Tata Consultancy Services also noted cautious outlooks. Still, Infosys secured big contracts in 2025, including AI projects worth billions.
| Metric | September 2025 Quarter | Year-Over-Year Change |
|---|---|---|
| Revenue | 40,000 crore rupees | Up 4% |
| Net Profit | 6,500 crore rupees | Up 5% |
| Operating Margin | 21% | Stable |
| Large Deals Won | 10 major contracts | Value over 10 billion dollars |
These numbers show resilience, but analysts predict a softer second half. Factors like US election outcomes and interest rate moves could sway tech spending.
What This Means for Investors Going Forward
Looking ahead, the buyback could support Infosys shares through 2025’s end. With promoters committed long-term, it might attract more institutional buying. The stock has dropped 22 percent this year, but this event could spark a rebound.
Experts suggest watching for the record date announcement, as it will lock in who qualifies. Retail investors should check their holdings to maximize gains. Broader trends, like India’s growing digital economy, favor Infosys if it keeps innovating in cloud and automation.
In a related event, other Indian firms like Wipro have mulled similar buybacks this year, reflecting a trend of cash-rich companies rewarding shareholders amid market volatility.
What do you think about this buyback move? Share your views in the comments below and spread the word if it helped you understand the news better.
