Infosys has officially concluded its much-anticipated ₹18,000 crore share buyback for 2025, and the final results have brought a pleasant surprise for retail shareholders. The final acceptance ratio for retail investors has come in at 55%, far higher than early estimates. This buyback has become one of the most significant capital-return events in India’s IT sector this year.
This detailed blog post covers the updated ratios, pay-out expectations, taxation rules, and what retail investors should understand going forward.
🏢 Overview of Infosys Buyback 2025
Infosys conducted a buyback of equity shares through the tender offer route, providing shareholders an opportunity to sell their shares back to the company at a premium price.
Key Buyback Highlights
- Buyback Size: ₹18,000 crore
- Buyback Price: ₹1,800 per share
- Method: Stock Exchange Tender Route
- Total Shares Targeted: 10 crore shares
- Buyback Window: 20 November – 26 November 2025
- Record Date: 14 November 2025
The buyback aimed to reward shareholders, optimize capital allocation, and enhance earnings per share by reducing the overall share count.
🎯 Final Acceptance Ratio – Retail Investors (Big Update!)
One of the biggest developments is the final acceptance ratio for small shareholders (those holding shares worth up to ₹2 lakh on record date).
✔ Final Retail Acceptance Ratio: 55%
This means:
- If you tendered 100 shares, Infosys accepted 55 shares.
- This is significantly higher than initial indicative expectations (18.10%).
- Retail investors benefited due to lower overall participation within the reserved quota.
This makes the 2025 buyback one of the most rewarding ones for small shareholders in recent years.
🧮 What Happens Next?
✔ 1. Payout Credit
Amount for accepted shares will be credited directly to the investor’s registered bank account linked with the demat.
✔ 2. Return of Unaccepted Shares
The remaining shares (45% in this scenario) have already been automatically returned to the shareholder’s demat account.
✔ 3. Contract Notes & Confirmation
Brokers will issue contract notes confirming accepted quantities and payout details.
📌 What About HNI / General Category Investors?
While retail investors received a strong 55% acceptance, the HNI/general category saw a significantly lower acceptance ratio (as expected due to higher participation and no reserved quota).
📘 Taxation Rules – Important for All Shareholders
The new buyback taxation framework (effective 1 October 2024) applies to this Infosys buyback.
🆕 New Tax Rule Highlights
- Buyback proceeds are taxed in the hands of the shareholder, not the company.
- Entire buyback amount is treated as deemed dividend, taxable at the investor’s income-tax slab rate.
- TDS applies on the buyback payout:
- 10% for resident individuals
- Higher/different rates for NRIs depending on DTAA
- Cost of acquisition is NOT allowed as deduction against the buyback amount.
- Instead, the cost becomes a capital loss, which can be set off against future capital gains.
This is a critical point for investors planning their overall tax strategy.
📅 Key Dates at a Glance
- Record Date: 14 Nov 2025
- Buyback Window: 20–26 Nov 2025
- Last Date: 26 Nov 2025 (cut-off time differed across brokers)
- Payout & Confirmations: Processed after bid verification
⭐ Why This Buyback Was Beneficial for Retail Investors
- 55% acceptance means retail investors could tender a substantial portion of their shares at a premium.
- Buyback price of ₹1,800 was at a significant premium to the trading range during the window.
- Return of unaccepted shares allows investors to continue holding long-term at no additional cost.
- The new tax rules change the net return, but even after tax, many investors may still see meaningful gains.
🧭 Final Thoughts
The Infosys Buyback 2025 stands out as a highly rewarding event for retail shareholders, thanks to the unexpectedly strong 55% acceptance ratio. While taxation under the new rules reduces the post-tax benefit compared to earlier years, the buyback still offered an attractive exit opportunity at a premium.
Investors should now ensure they:
- Track payout credits
- Account for TDS and dividend taxation
- Record capital loss for future set-off
As always, it’s wise to consult a financial or tax advisor for personalized planning.
🔒 Disclosure (SEBI-Compliant)
This article is for informational and educational purposes only. It does not constitute investment, tax, or legal advice. Investors must verify details through official company filings and consult licensed advisors before acting. All information is subject to SEBI and Government of India regulations.
