Infosys Share Buyback: Infosys has opened the window for its largest-ever share buyback worth Rs 18,000 crore, carried out through the tender-offer route. The company is offering a fixed price of Rs 1,800 per share, a strong premium over the current market price.
However, despite the attractive premium, the real twist lies in the tax rules, which have completely changed how investors benefit from buybacks.
Who is eligible to participate?
According to Zee Business, only those shareholders qualify who held Infosys shares on 14 November 2025. Any shares bought after this date will not be accepted in the buyback.
Acceptance Ratio: Extremely Low Chances of Full Acceptance
Infosys plans to repurchase only 2.4 per cent of its total shares, leading to a very low acceptance ratio.
Small shareholders: Can tender 11 out of 2 shares
General category: Can tender 706 out of 17 shares
This means the probability of your full holding getting accepted is very low.
Buyback rules—earlier vs now
Earlier System (Before 1 October 2024)
The company paid 23.3 per cent tax.
Shareholders received tax-free gains.
It was simple and favourable for investors.
New System (After 1 October 2024)
Buyback proceeds are treated as dividend income.
Investors pay tax based on their personal income-tax slab.
The cost of purchased shares is treated as capital loss, offering limited relief.
Case study: What investors actually get
Assume an investor owns 100 shares bought at Rs 1,550, and tenders them at the buyback price of Rs 1,800.
Case 1: Shares Held for Less Than 1 Year (STCG Scenario)
Tax @35 per cent: Rs 63,000
Amount received: Rs 1,17,000
Capital loss benefit: Rs 35,650
Net outcome: Rs 2,350 loss
Conclusion: Short-term shareholders lose money.
Case 2: Shares Held for More Than 1 Year (LTCG Scenario)
Capital loss benefit: Rs 21,700
Net outcome: Rs 16,300 loss
Conclusion: Long-term shareholders also end up in the negative.
Editor’s Take: Anil Singhvi sounds a warning
Zee Business Managing Editor Anil Singhvi has advised investors to be very cautious:
If you bought Infosys shares less than a year ago — do NOT tender. It results in a clear loss.
If you are a long-term shareholder — even then, gains are not guaranteed due to higher tax and low acceptance.
Singhvi also flagged mark-to-market risk:
Any shares not accepted in the buyback return to the investor. If Infosys slips below Rs 1,550, investors may suffer double loss — heavy tax plus price fall.
Who Can Actually Benefit?
Only a narrow set of investors might gain:
Small shareholders (due to marginally better acceptance)
Investors who receive a higher acceptance ratio, which is highly uncertain
Overall, as Zee Business highlights, the new tax regime and weak acceptance odds make this one of the least beneficial buybacks for most investors.
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