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Infosys to buy back 11.3-crore shares at Rs 1,150 each (Lead)

Bengaluru, Aug 19 (IANS) Global software major Infosys Ltd on Saturday announced that it would buy back 11.3-crore shares of Rs 5 face value at Rs 1,150 ($18) per share via a tender offer at an outlay of Rs 13,000 crore.

“The Board has approved a proposal to buy back 11.3-crore equity shares of Rs 5 face value from the shareholders at a price of Rs 1,150 per share for an amount not exceeding Rs 13,000 crore,” said the IT major in a regulatory filing on the BSE.

The offer size is 20.51 per cent of the total paid-up capital and free reserves, aggregating up to 11.3-crore shares or 4.92 per cent of the equity shares.

The buyback decision comes a day after the company’s Chief Executive Officer (CEO) Vishal Sikka resigned and was appointed Executive Vice-Chairman till a new CEO takes charge by March 31, 2018.

The offer price at Rs 1,150 per share is Rs 226.90 more than Rs 923.10 per share closing price on Friday when it plunged 9.6 per cent after Sikka’s resignation spooked investors and is at around 18 per cent premium of the August 16 closing price.

The company closed the trading window on August 16 in view of the Board meeting on the share buyback and will reopen on August 22.

The buyback offer does not include costs like securities transaction tax, Goods and Services Tax, stamp duty, filing fees, advisors fees, brokerage, public announcement expenses, printing and dispatch expenses and other expenses.

“The buyback price also represents a premium of 19 per cent of the weighted average market price during the last three months.

“The buyback is subject to approval of the shareholders by way of a special resolution through postal ballot and its record date will be decided soon,” said the filing.

The Board has formed a Buyback Committee comprising Co-Chairman Ravi Venkatesan, Vishal Sikka, Interim CEO U.B. Pravin Rao, Chief Financial Officer (CFO) M.D. Ranganath, Deputy CFO Jayesh Sanghrajka, General Counsel Inderpreet Sawhney and Company Secretary A.G.S Manikantha.

The record date for the buyback will be determined soon.

Post Source: Ians feed

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