Infosys to consider share buyback on October 13
Published On: Tuesday, October 11, 2022 | By: Team KnowMyStock
IT major Infosys on Monday said it would consider a proposal for share buyback on Thursday when it is scheduled to report its quarterly earnings results. The Board of the Company will consider a proposal for buyback of fully paid-up equity shares of the Company at its meeting to be held on October 13, 2022,” Infosys said. The company is scheduled to announce its results for the second quarter of FY23 on the same day. If Infosys announces a share buyback program, this would be the fourth such corporate action in the history of the company. The first share buyback program of Rs 13,000 crore was announced by the Bengaluru headquartered company in 2017 through the tender offer route. It was followed by an Rs 8,260 crore issue in 2019 and Rs 9200 crore in 2021. The last two were executed through the open market route. The firm expects that the buyback will be valued between Rs 8,700 crore and Rs 9,500 crore.
According to Zee Business research, Infosys could fix the buyback price at a premium of 18-21 per cent from the current market price. The buyback range could be between Rs 1740 and Rs 1800, according to Zee Business research analyst Arman Nahar.
A note by Jeffries said that the focus for this quarter will be on management commentary on the demand environment — on the deal pipeline, sales cycle, nature of deals and deal tenure, pricing, and vendor consolidation, as well as a focus on commentary around client spending.
“We expect aggregate revenue growth of 3.6% QoQ for IT companies under our coverage, in line with last quarter, driven by deal ramp-ups. Among large IT firms, we expect Infosys to deliver the highest organic growth (+4% QoQ),” the note on the preview for the second quarter said.
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