On Sunday, Global leader in the next general digital services provider, Infosys, in a listing to Bombay Stock Exchange (BSE), said that its Board would consider a proposal for buyback of fully paid-up equity shares of the company. The meeting is scheduled for April 14, 2021. The company is buying back its share for the third time with this.
The company in a statement said, “The Board of the Company will consider a proposal for buyback of fully paid-up equity shares of the Company at its meeting to be held on April 14, 2021, in accordance with the Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018.”
On April 13 and 14, Infosys is likely to hold board meetings to approve and take on record financial results for the quarter and fiscal year ended March 31, 2021. The results are coming out on 14 April, and the company will be declaring a final dividend for the last financial year after the meeting.
Indian IT companies will be disclosing their fourth quarter (Q4) and FY 2020-21 results from April 12. Tata Consultancy Services (TCS) will be the first company to announce its financial results.
Infosys, by the end of Q3 FY21, held the cash and investment of $4.5 billion. Their quarterly report shows that the company’s cash and investments are going strong despite paying $687 million of half-yearly dividend during this period.
Earlier, the company had announced a buy-back twice. In 2017, the company reabsorbed its portion of shares at ₹13,000 crore at ₹1,150 per share. And then, in 2019, it announced the buyback of shares worth 8260 crore at price less than ₹ 800 per share.
As per an Edelweiss Research report, Infosys indicates 13-15 per cent growth for FY22.
Sandip Agarwal of Edelweiss Research in his report, “Infosys will be a key beneficiary of core transformation, accelerated Cloud adoption, and digital adoption. Further, persistent market share loss of key players, such as Capgemini and Cognizant, will directly benefit Infosys. We believe the company will give revenue growth guidance of 13-15 per cent for FY22. We also expect Infosys to post a 50-basis-point decline in margins quarter-on-quarter, owing to wage hikes.”
The company’s stock reached a peak in 52-week at ₹ 1,454 on Friday. Its shares closed at ₹ 1,439.8 apiece on April 9.