Infosys share buyback official; board to discuss it on 19 August

Infosys said its board would meet on August 19 to discuss and take a call on the share buyback plan as the company received Sebi's approval for the same.

"We would like to inform you pursuant to Regulation 29 (1)(b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, that the Board of Directors of Infosys Ltd will consider a proposal for buyback of equity shares of the company at its meeting to be held on August 19, 2017," said the IT services firm in a filing to the BSE. Infosys said it would inform the outcomes of the board meeting to the exchanges.

Infosys, India’s second largest IT services firm, has closed the trading window with immediate effect and would reopen on August 22.

Infosys proposed in April that it would pay up to Rs 13000 crore to buyback equity shares.

The Bengaluru-based IT services major reported cash and cash equivalents and investments worth Rs 39,335 crore as on June 30, 2017 on its balance sheet and proposed its first share buyback.

As the IT services sector has seen a single-digit growth for the first time in a decade on account of automation and shift to digital technology, peers of Infosys such as TCS, Wipro, HCl Technologies have already announced share buyback plans. IT stocks across the industry have yielded sluggish returns during the past one year.

Infosys was awaiting regulatory approvals before it could take a call on the share repurchase proposal.

The company in February amended its articles of association that would allow it to go for a share buyback, a move watched by shareholders including its founders who had sought better capital allocation by the company.

Infosys, India's second-biggest software services exporter, said on Thursday it would return up to $2 billion to shareholders, yielding to pressure for a share buyback from a group of founders and former executives. It also announced the appointment of Ravi Venkatesan, an independent director, as co-chairman of the board - part of efforts to address the founders' corporate governance concerns. Some founders and former executives of the Bengaluru-based company have publicly accused its board of governance lapses and urged it to follow the lead of rival Tata

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