Infosys has officially rolled out its largest share buyback in company history, and investors are actively watching the developments. With a sizeable ₹18,000-crore allocation and a premium buyback price, this corporate action has become one of the most discussed events in the IT sector. Here’s a clear and unique breakdown of everything important — timeline, entitlement, categories, participation rules and the revised taxation framework after 1 October 2024.
🏢 Overview of the Infosys Buyback
Infosys Limited has opened its newest buyback program with the intention to repurchase up to 10 crore fully-paid equity shares, which accounts for roughly 2.41% of its total equity base. The buyback will be executed through the tender-offer route via stock exchanges (NSE/BSE).
✔ Key Details at a Glance
- Buyback Size: ₹18,000 crore
- Buyback Price: ₹1,800 per share
- Method: Tender Offer (proportionate basis)
- Record Date: 14 November 2025
- Buyback Window: 20 November 2025 – 26 November 2025
- Promoter Participation: None — promoters and promoter group have opted out
- Reservation for Small Shareholders: 15% of total buyback shares
The absence of promoter participation makes this buyback more favourable for retail and institutional shareholders, as it may improve acceptance ratios.
📅 Full Timeline of the Buyback
| Stage | Date |
|---|---|
| Record date for eligibility | 14 Nov 2025 |
| Buyback opens | 20 Nov 2025 |
| Buyback closes | 26 Nov 2025 |
| Final acceptance, payout & extinguishment | 02 Dec 2025 |
| Payment Consideration to Eligible Sahres | 03 Dec 2025 |
| Last Date of Extinguishment of Shares | 12 Dec 2025 |
Shareholders holding shares in their demat account on the record date are eligible to participate.
🎯 Final Acceptance Ratio (As per Latest Update)
Based on total shares tendered and buyback allocation, the actual acceptance ratios are:
✅ Small Shareholders (Retail ≤ ₹2 lakh)
Acceptance Ratio: 18.10%
This means out of 100 shares tendered, approx. 18 shares were accepted and bought back by Infosys.
✅ General Category / HNI (> ₹2 lakh)
Acceptance Ratio: 2.40%
This means out of 100 shares tendered, approx. 2–3 shares were accepted.
These ratios reflect the final outcome after the closure of the buyback window.
💡 How the Tender Process Works
- Check eligibility (demat holding on record date).
- Visit your broker’s buyback/tender section during the buyback window.
- Select the number of shares you wish to tender.
- Exchange forwards shares to Infosys for verification.
- Accepted shares are debited; payment is received for accepted quantity.
- Unaccepted shares automatically return to your demat account.
Please note that Eligible Shareholders may also check their entitlement on the website of the Registrar to the Buyback, i.e., KFin Technologies Limited, by following the steps given below:
1) Click on https://kosmic.kfintech.com/karisma/buybackofferv2.aspx
🧾 Taxation of Buyback (New Rules After 1 Oct 2024)
This is where many investors are still unaware of the major change.
🔄 Earlier Rule (Before 1 Oct 2024)
- Company paid buyback tax (20% + surcharge + cess).
- Shareholder received buyback amount tax-free.
🆕 New Rule (Applicable to Infosys Buyback 2025)
Under the amended Income-tax Act (Finance Act 2024):
- Shareholders are now taxed, not the company.
- The buyback payout is treated as deemed dividend u/s 2(22)(f).
- Taxed at the investor’s normal slab rate under “Income from Other Sources”.
- TDS applies:
- 10% for resident individuals
- Higher/different rates for NRIs as per DTAA
- Cost of shares IS NOT deductible while computing dividend income.
- However, the cost becomes a capital loss, which can be carried forward and set off against future capital gains.
Example
You tender 20 shares at ₹1,800.
- Full ₹36,000 is treated as dividend income.
- If your slab is 10%, tax = ₹3,600 (subject to TDS).
- If the original cost was ₹24,000, that becomes a capital loss (₹24,000) that you can set off later.
📊 Why This Buyback Matters
- The buyback price of ₹1,800 often provides a premium compared to market fluctuations.
- Promoters opting out means more room for public shareholders.
- It may improve financial ratios like EPS.
- It gives investors a structured exit opportunity — especially useful in volatile markets.
✔ Should You Participate? – A Quick Guide
You may consider participating if:
- The buyback price is significantly higher than the market price.
- You hold shares within the small-shareholder limit — acceptance ratio is usually better.
- You want to book profits and benefit from guaranteed entitlement.
You may choose not to tender if:
- You are a long-term investor expecting higher future value.
- You wish to avoid dividend-taxation impact under the new rule.
🧭 Final Thoughts
The 2025 Infosys buyback is a significant capital-return initiative at an attractive premium. However, the taxation shift after October 2024 changes the final post-tax benefits, especially for retail investors. Understanding entitlement ratios, tax impact and acceptance probability is crucial before deciding whether to tender your shares.
Disclosure:
This communication is for informational purposes only and should not be considered as investment, tax, or legal advice. The information provided is based on publicly available sources and updates issued by Infosys Limited, stock exchanges, and regulatory authorities. Investors are advised to independently verify all details before making any investment decisions. Past performance or corporate action outcomes do not guarantee future results.
The sender does not promote buying, selling, or tendering of shares and holds no responsibility for financial decisions taken based on this update.
Please consult your financial advisor or tax consultant for personalised guidance in accordance with SEBI and Government of India regulations.
