Shares of Infosys went up by 2 per cent following news that three former executives have asked the company to consider a buyback of shares.
The IT major’s stock settled the day 2.01 per cent higher at Rs 3,574.70 on the BSE. During the day, it rose by 2.86 per cent to Rs 3,604.50.
At the NSE, Infosys’ scrip was up 1.34 per cent to close the day at Rs 3,560.
On the volume front, 1.27 lakh shares of the company changed hands at the BSE, while over 22 lakh shares were traded at the NSE during the day.
Infosys’ former directors T V Mohandas Pai, V Balakrishnan and D N Prahlad have asked the nation’s second biggest software firm to buyback shares worth Rs 11,200 crore to boost stock’s value.
The former executives are seeking Rs 3,850 a share, which is at a premium of 7.7 per cent over the company’s closing price of Rs 3,574 on the BSE today.
Balakrishnan, who resigned from the company’s board in December, Pai, who left the board in 2011, and Prahlad, a former senior vice president, on July 29 wrote to Infosys Board saying the share buyback will help check the “asymmetry of information” between management and investors.
“There is a dramatic valuation dis-connects in the market place and this needs to be corrected,” the three wrote.