IT major Infosys on Friday informed that its share buyback offer worth up to Rs 13,000 crore will open from November 30, 2017.
According to a BSE filing, the IT major said it has received the observations from the Security and Exchange Board of India (Sebi) on its draft letter of offer for the buyback.
As per the letter of offer, the buyback has been proposed for up to 11,30,43,478 equity shares of face value of Rs 5 at a price of Rs 1,150 per share via the "tender offer route".
The buyback size for the offer which closes on December 14, 2017 is up to Rs 13,000 crore.
The "buyback through tender offer" was considered and approved by the IT major's Board of Directors at their meeting held on August 19, 2017.
The buyback is expected to help the IT major return surplus cash to its shareholders in proportion to their shareholding.
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A buyback generally improves return on equity and earnings per share by reducing the equity base and also gives an option to the shareholders to get cash in lieu of equity shares or to increase in their percentage shareholding in the company following the offer, without additional investment.
--IANS
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