Infosys Limited , one of India's leading IT services companies, has announced a significant share buyback program worth ₹18,000 crore through the tender offer route. This move, approved by the company's Board of Directors and shareholders, represents a strategic step in Infosys' capital allocation policy and is expected to create long-term value for shareholders.

Key Details of the Buyback

• Buyback Size: ₹18,000 crore (approximately $2.2 billion)
• Buyback Price: ₹1,800 per equity share
• Number of Shares: Up to 10 crore equity shares
• Percentage of Paid-up Capital: Approximately 2.41% of the total paid-up equity share capital

Financial Implications

The buyback offer size represents:

• 24.31% of the aggregate paid-up share capital and free reserves on a standalone basis
• 21.68% of the aggregate paid-up share capital and free reserves on a consolidated basis

These figures are based on Infosys' latest audited interim condensed financial statements.

Eligibility and Process

• All equity shareholders as on the record date will be eligible to participate in the buyback.
• The buyback will be implemented through a tender offer route using the stock exchange mechanism.
• A reservation of up to 15% of the buyback size is made for 'small shareholders' as defined by SEBI regulations.

Timeline

• Record Date: November 14
• Tendering Period: November 20 to November 26 (5 working days)

Strategic Rationale

Infosys stated that the buyback is in line with the company's capital allocation policy, which aims to return approximately 85% of free cash flow cumulatively over a five-year period through a combination of semi-annual dividends and/or share buybacks.

Market Impact

The buyback price of ₹1,800 per share represents:

• A premium of 25.64% over the closing price on BSE as of September 8
• A premium of 25.62% over the closing price on NSE as of September 8

Management Commentary

The company emphasized that the buyback is expected to improve return on equity and earnings per share by reducing the equity base, potentially leading to long-term increase in shareholders' value.

Regulatory Compliance

Infosys has confirmed that the buyback complies with all relevant SEBI regulations and the Companies Act, 2013. The company has also stated that it will not raise further capital for a period of one year from the expiry of the buyback period, except in discharge of subsisting obligations.

Conclusion

This share buyback program demonstrates Infosys' commitment to returning surplus cash to shareholders and optimizing its capital structure. It also reflects the company's confidence in its financial position and future prospects. Shareholders and market analysts will be closely watching the execution of this buyback and its impact on Infosys' stock performance in the coming months.

Investors are advised to carefully review the Letter of Offer, which will be distributed in due course, for full details of the buyback process and associated risks before making any decision to participate.

Infosys , a global leader in next-generation digital services and consulting, has announced the development of an innovative AI Agent designed to transform operations in the energy sector. This cutting-edge solution leverages the power of Infosys Topaz, Infosys Cobalt, and Microsoft's AI and Cloud capabilities to streamline processes and enhance decision-making in the industry.

Key Features of the AI Agent

The new AI Agent boasts several impressive capabilities:

• Intelligent Data Processing: The system can process various types of reports, including well logs, images, plots, and tables, to streamline operations.
• Predictive Insights: It provides early warnings to anticipate real-time operational challenges.
• Conversational AI: The solution uses conversational AI to transform real-time data into actionable insights.
• Automation: It aims to automate reports and boost operational efficiency.

Technology Stack

The AI Agent is built on a robust technology foundation:

• Infosys Topaz: An AI-first offering using generative AI technologies
• Infosys Cobalt: A set of services, solutions, and platforms for enterprises to accelerate their cloud journey
• Microsoft's AI and Cloud capabilities: Including Microsoft Copilot Studio, Azure OpenAI Foundry Models, and ChatGPT 4

Expected Benefits

The implementation of this AI Agent is expected to bring several benefits to the energy sector:

• Improved safety and reliability
• Enhanced wellbore quality
• Optimized operations performance
• Reduced non-productive time (NPT)

Industry Perspectives

Stephen Boyle, VP Partner Development, Global Partner Solutions at Microsoft, emphasized the importance of partnership in unlocking AI's potential for industry transformation. He stated, "Our collaboration with Infosys combines deep domain expertise with advanced AI and cloud technologies, helping organizations drive measurable business value by enhancing safety, reliability, and operational excellence."

Ashiss Kumar Dash, EVP & Global Head – Services, Utilities, Resources, Energy, and Enterprise Sustainability at Infosys, highlighted the solution's ability to address key challenges in the energy sector. He said, "Our AI Agent solution, powered by Microsoft's AI and Cloud capabilities, Infosys Topaz, and Infosys Cobalt, directly tackles these challenges by transforming raw data into actionable insights through intuitive conversational AI. We see this as a pivotal move toward an AI-first future, where intelligent automation and predictive analytics redefine productivity and operational excellence."

Looking Ahead

As the energy sector continues to face challenges in managing vast volumes of operational data while making real-time decisions, Infosys' AI Agent represents a significant step forward. By harnessing the power of AI and cloud technologies, this solution has the potential to redefine productivity and operational excellence in the industry.

The development of this AI Agent aligns with Infosys' commitment to leveraging cutting-edge technologies to create value for its clients. As the company continues to innovate in the AI space, it will be interesting to see how this solution evolves and what impact it will have on the energy sector in the coming years.