Infosys share buyback record date today—check premium, tax liability and other key details

Infosys share buyback: Infosys Ltd will finalise the list of eligible shareholders for its Rs 18,000 crore share buyback on Friday, November 14. The record date is today, and only those investors holding Infosys shares at the end of the trading session will be eligible to participate in the buyback.

A share buyback, or stock repurchase, is when a company buys its own shares from the marketplace. This action reduces the number of outstanding shares, which can increase the value of the remaining shares.

Infosys share buyback premium

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The company is conducting the buyback through the tender offer route. This method involves repurchasing shares at a fixed price, which Infosys has set at Rs 1,800 per share. The buyback price represents a 17 per cent premium to the stock’s previous closing price on Thursday, and around a 13 per cent premium to the current market price of Rs 1,506 on the NSE. The buyback dates are yet to be announced.

Promoters will not participate

Infosys will repurchase up to 10 crore fully paid-up equity shares with a face value of Rs 5 each. The company has already confirmed that the promoters will not participate in the buyback. Their non-participation increases the probability of a higher acceptance ratio for retail shareholders once the tendering period begins.

Infosys Buyback tax libility

Starting October 1, 2024, taxation rules for share buybacks changed. Under the revised framework, the tax liability has shifted from the company to the individual shareholder. The full amount received by a shareholder after tendering shares in the buyback will now be considered dividend income. This amount will be taxed according to the shareholder’s applicable income tax slab.

In addition, the sales consideration for shares tendered in the buyback is treated as zero. This results in a capital loss for the shareholder, which can be set off against other capital gains during the same financial year.