Infosys shares up 7% in 2 days; can it rally more after tomorrow's buyback announcement?
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Shares of IT major Infosys gained 2% to an intraday high of Rs 1,535 on the BSE, ahead of its share buyback meeting scheduled for Thursday, September 11. If approved, this will be the company’s fifth share buyback. Data from ET Intelligence Group (ETIG) shows that from the day of such announcements, Infosys shares rose on three out of four occasions over three- and six-month periods. During one-month periods, however, performance has been mixed. The last buyback took place in 2022, when the company spent Rs 9,300 crore to repurchase shares via the open market. In fact, all of the last three buybacks were conducted through the open market, not via the tender offer route. It remains to be seen whether the company will adopt the tender offer or the open market route this time. “The last buyback didn’t really help the stock deliver much in the medium to long term. However, the current scenario looks different — valuations are now more attract...