Infosys Buyback

Co-founder of Infosys Nandan Nilekani, who took over as the non-executive chairman of the company after a boardroom reshuffle, speaks at a press conference at the Infosys headquarters in Bengaluru to announce its financial results for the second quarter on Oct. 24, 2017. The software giant Nov. 17 announced a share buyback beginning Nov. 30. (Manjunath Kiran/AFP/Getty Images)

BENGALURU — Global software major Infosys Ltd will buy back 11.3-crore of its equity shares of Rs. 5 face value by paying Rs. 13,000 crore at the price of Rs. 1,150 per share starting Nov. 30, said the IT major Nov. 17.

"Buyback of 113,043,478 equity shares of Rs. 5 each at a price of Rs. 1,150 per share under the tender offer route opens on Nov. 30 and closes on Dec. 14," said the company in regulatory filing on the Bombay Stock Exchange.

Offer managers Kotak Mahindra Capital Company Ltd. and J.P. Morgan India Ltd. submitted to the BSE a copy of the letter of offer sent to its shareholders on the buyback.

"The company has received the approval of the regulator (Securities and Exchange Board of India) on Thursday on the buyback and the offer letters will be dispatched to the shareholders by Nov. 23," said the filing.

"The last date of receipt of tender forms is Dec. 18 and the last date of settlement of bids on the stock exchanges is Dec. 26," added the filing.

The outsourcing firm made the public offer Oct. 10 after its investors voted overwhelmingly in favor of the buyback resolution through postal ballot and electronic voting conducted between Sept. 8 to Oct. 7.

"The offer size is 20.51 percent of the total paid-up capital and free reserves, aggregating up to 11.3-crore  a share or 4.92 percent of the total shares for an amount not exceeding Rs. 13,000 crore," said the company in an earlier filing.

The promoters, including co-founders N.R. Narayana Murthy and Nandan Nilekani have offered to sell 1.77 crore shares - valued at Rs. 2,038 crore in the buyback offer.

According to the shareholding pattern, the promoters group, comprising co-founders and their families hold 12.92 percent of the shares; foreign institutional investors and foreign portfolio investors, 37.33 percent; the Indian retail, corporate and other investors 23.08 percent; Indian FIs, banks and mutual funds 9.63 percent; American depository receipts 16.69 percent and Non-resident Indians 0.52 percent.

The company's blue chip scrip, however, lost Rs. 17.65 per share to close at Rs. 970.95 per share at the end of Nov. 17 trading on the BSE as against the Nov. 16 price of Rs. 988.60 after opening at Rs. 989.80.

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