Infosys Limited , a global leader in next-generation digital services and consulting, has announced a significant internal reorganization involving its Argentina subsidiary. The company plans to transfer 90% of its shareholding in Infosys Consulting S.R.L., Argentina, to its wholly-owned US subsidiary, Infosys Nova Holdings LLC.

Key Details of the Transaction

Financial Impact

The transaction involves a subsidiary that represents a small fraction of Infosys' overall business:

Corporate Governance and Compliance

Infosys has emphasized that this move is part of an internal reorganization strategy. The company has taken steps to ensure compliance with regulatory requirements:

• The transaction falls under related party transactions.
• Valuation has been determined based on a report from a third-party valuer, ensuring an arm's length transaction.
• The Board of Infosys Nova Holdings LLC approved the proposal on November 13, 2025.
• The company has made the necessary disclosures under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Implications and Outlook

While the financial impact of this transaction appears minimal given the size of the Argentina subsidiary relative to Infosys' global operations, it signifies the company's ongoing efforts to streamline its corporate structure. Such reorganizations can potentially lead to improved operational efficiency and more effective management of international subsidiaries.

Investors and stakeholders will likely be watching closely to see if this move is part of a broader strategy for Infosys' operations in the Americas region. As the transaction is not set to complete until January 2026, there will be ample time for the market to assess its potential long-term implications for Infosys' global business structure.

Infosys continues to demonstrate its commitment to transparency by promptly disclosing this information to all relevant stock exchanges and making it available on the company's website for public access.

Infosys , one of India's leading IT services companies, has set November 13 as the crucial date for investors looking to participate in its massive Rs 18,000 crore share buyback program. This corporate action, approved by the board, marks the company's largest buyback to date.

Key Highlights of the Buyback

Important Points for Shareholders

1. Promoter Participation: Notably, promoters, including N.R. Narayana Murthy, Nandan Nilekani, and Sudha Murty, will not participate in the buyback.

2. Limited Acceptance: Due to the buyback covering only 2.41% of total equity, not all tendered shares may be accepted. Typically, retail investors might see higher acceptance ratios.

3. Timeline: The repurchase process is expected to take approximately three to four months to complete.

4. Objective: Infosys stated that the buyback aims to return surplus funds efficiently while enhancing long-term shareholder value by reducing the equity base.

Tax Implications

Zerodha co-founder Nithin Kamath has cautioned investors about the tax implications of the buyback:

1. Taxation of Gains: Gains from the buyback are taxed as 'income from other sources' at applicable slab rates.

2. Capital Loss: The entire investment value is considered a capital loss.

3. Attractiveness: Kamath noted that the buyback becomes attractive mainly when investors have other capital gains to offset against the resulting capital losses.

Investor Considerations

Shareholders interested in participating should ensure they hold Infosys shares by November 13 to be eligible for the buyback. The premium of 16% over the current market price (around Rs 1,550) might make this an appealing opportunity for some investors.

However, it's important to note that due to the limited scope of the buyback (2.41% of equity), there may be a pro-rata acceptance of shares, especially if the offer is oversubscribed. Investors should consider their investment goals, tax implications, and consult with financial advisors before making a decision.

This significant corporate action by Infosys demonstrates the company's commitment to returning value to shareholders and optimizing its capital structure. As the process unfolds, market participants will be keenly watching its impact on Infosys' stock price and overall market sentiment in the IT sector.