Infosys said on Monday that some of the promoters of the company have expressed an interest in participating in the proposed buyback of shares, which it announced recently.
“We would like to inform you that some of the members of the promoter and promoter group of company have communicated their intention to participate in the... buyback,” according to a stock exchange filing by the firm.
An analyst with a brokerage firm said the development clearly shows that some of the founders are keen to exit the company in a phased manner.
The ₹13,000-crore buyback is subject to approval by the shareholders by means of a special resolution though a postal ballot.
“The public announcement setting out the process, time lines and other requisite details will be released in due course in accordance with the buyback regulations,” the company said in its filing to the BSE.
Infosys on August 19 announced it will buy back its fully paid-up equity shares of face value of ₹5 each, from equity shareholders of the company for an amount not exceeding ₹13,000 crore. The offer size amounts to 20.51 per cent of the total paid-up equity capital and free reserves of the company and will comprise of the purchase of 113,043,478 shares aggregating up to 4.92 per cent of the paid-up equity capital of the company at a price of ₹1,150 per equity share.
The buyback plan was announced in April. The company had then decided to pay out ₹13,000 crore to shareholders through dividends or buy back shares by using 70 per cent of its free cash flows. The company has $6.1 billion worth of liquid cash at hand.
Following the announcement of the appointment of co-founder Nandan Nilekani as the non-executive chairman, the company’s shares vaulted higher on Monday, to close at ₹940.30, which was 3.09 per cent higher than the previous day’s closing price.