The trouble hit IT Major Infosys has announced a major shares buy back of Rs 13,000 crores. Te decision was taken after many of its top line executives quit the company including the CEO of the company Vishal Sikka who accused the founders of intruding in his day to day activities. Though Sikka was supported by the Board, he still decided to hang his boots which saw the price of the shares came down crushing in the stock markets by as much as 7%
The company would have thought that this is the right time to strike the opportunity since many of the share holders were hocked with the recent developments that took place in the company which has resulted in the fall in investor confidence. Infosys is sitting on a cash pile of USD3.1 Billion and after this payout, it would come down to little over USD4 Billion.
The company would buy back up to 11,30,43,478 crore shares aggregating up to 4.92 per cent of the paid-up equity capital via tender route at a price of Rs 1,150, Infosys said in a BSE filing. The buyback is however subject to the approval of the share holders, which would be decided by passing a Special Resolution which would also facilitate postal ballots. The date f the buyback will be informed later, once all the regulatory approvals are received.