Infosys hits over three-month high; stock up 10% in November
The stock of information technology (IT) bellwether was quoting at its highest level since August 18, 2017. It is 3% away from its 52-week high of Rs 1,045 touched on January 13, 2017.
Thus far in the month of November, Infosys outperformed the market by gaining 10% against 1.4% rise in the S&P BSE Sensex.
The share buyback offer, which closes on December 14, is for purchase of up to 113 million shares, or 4.92% of paid-up capital, at Rs 1,150 per share through tender offer route.
Infosys has set the last date of settlement of bids on the stock exchange on December 26. The last date to receive completed tender forms and other specified documents including physical share certificates by the registrar and transfer agent (RTA) is December 18.
Promoter and promoters group currently hold 12.75% stake in India’s second-largest software exporter with 292.8 million equity shares. 16 members of this group “have expressed their intention” to participate in buyback and tender up to 17.73 million equity shares (15.69% of total buyback size), which could be worth up to Rs 2,039 crore in a Rs 13,000 crore buyback plan.
On October 31, 2017, the stock had turned ex-date for the proposed buyback and for interim dividend of Rs 13 per share. The company’s board had fixed November 1, 2017 as the record date for determining the entitlement and the names of the equity shareholders, to whom the Letter of Offer will be sent and will be eligible to participate in the buyback which was approved in the board meeting on August 19, 2017.