After announcing a share buyback plan in April, India’s second largest software services exporter Infosys Ltd has finally got approval from the market regulator Securities and Exchange Board of India.
In its filing to Bombay Stock Exchange, Infosys said its board would meet on August 19 to discuss and take a call on the share buyback plan. Infosys has closed the trading window with immediate effect and would reopen on August 22.
The IT services major had reported cash and cash equivalents and investments worth Rs 393 billion (US$ 6.13 billion) as on June 30, 2017 on its balance sheet and proposed its first share buyback, reports Business Standard. In April, Infosys had proposed that it would pay up to Rs 130 billion (US$ 2.03 billion) to buy back equity shares.
As the IT services sector has seen a single-digit growth for the first time in a decade on account of automation and shift to digital technology, peers of Infosys such as TCS, Wipro, and HCL Technologies have already announced share buyback plans. IT stocks across the industry have yielded sluggish returns during the past one year.