Some Promoters May Participate In Rs 13,000-Crore Infosys Buyback
Infosys’ promoters keen to participate in Rs 13,000-crore buyback.
Few promoters have shown interest in tendering their shares in the Rs 13,000-crore buyback that Infosys Ltd. announced in an eventful week that saw a change of guard at India’s second-largest software services provider.
The members of the promoter and promoter group have communicated their intention to participate in the proposed buyback, the company said in a stock exchange filing. The board of Infosys had approved buying back 4.92 percent stake in the company at Rs 1,150 a piece, around 18 percent higher than the current market price.
The buyback was promised by Infosys following its March quarter earnings after activist-founders led by NR Narayana Murthy criticised the company for sitting on a huge pile of cash.
Infosys’ boardroom has seen a major reshuffle as co-founder and former Chief Executive Officer Nandan Nilekani returned to lead the company as non-executive chairman to calm frayed nerves of shareholders. This followed months of bickering between between Murthy and the board over the company’s performance, corporate governance and the compensation of outgoing CEO Vishal Sikka.
The IT bellwether's market capitalisation has tumbled over 7.8 percent since Sikka's resignation. Shares closed 3.1 percent higher on Monday, while the benchmark S&P BSE Sensex ended trade 0.5 percent up.