Infosys , one of India's leading IT services giants, has announced a significant move that's set to impact its shareholders and the market at large. The company's Board of Directors has approved a substantial share buyback proposal, demonstrating confidence in its financial position and commitment to enhancing shareholder value.

Buyback Details

The Infosys Board has given the green light to a share buyback program worth ₹18,000.00 crore (approximately $2.20 billion) at a price of ₹1,800.00 per share. This represents a premium over the current market price, potentially making it an attractive proposition for shareholders.

Key points of the buyback include:

• Total Shares: Up to 10.00 crore fully paid-up equity shares
• Percentage: Represents 2.41% of the total paid-up equity share capital
• Method: Tender offer route on a proportionate basis
• Eligibility: All equity shareholders as on a record date (to be announced later)

Shareholder Approval and Regulatory Compliance

The buyback proposal is subject to shareholder approval through a postal ballot and other statutory approvals. Infosys has constituted a buyback committee comprising the Chief Financial Officer, Chief Legal Officer & Chief Compliance Officer, and Company Secretary to oversee the process.

American Depositary Shares (ADS) Holders

Infosys will seek exemptive relief from the U.S. Securities and Exchange Commission due to conflicting regulatory requirements between Indian and U.S. laws. ADS holders may participate in the buyback by cancelling their ADSs and withdrawing the underlying equity shares to become equity shareholders on the record date.

Financial Prudence

It's worth noting that the buyback size does not exceed 25% of the aggregate paid-up capital and free reserves, based on the financial statements. This indicates Infosys' adherence to regulatory norms and financial prudence in executing the buyback.

Market Impact

The announcement of this substantial buyback is likely to be viewed positively by the market, potentially supporting Infosys' share price in the near term. It reflects the company's strong cash position and its strategy to return excess cash to shareholders.

Conclusion

Infosys' ₹18,000.00 crore share buyback plan represents a significant corporate action that underscores the company's financial strength and its focus on shareholder returns. As the process unfolds, investors and market watchers will be keenly observing its impact on Infosys' stock performance and overall market sentiment in the Indian IT sector.

Shareholders are advised to stay tuned for further announcements regarding the record date and other procedural details of this substantial buyback offer.

Infosys (NSE, BSE, NYSE: INFY), a global leader in digital services and consulting, has announced a groundbreaking ten-year strategic alliance with HanesBrands Inc. (NYSE: HBI), a global apparel company. This collaboration aims to revolutionize HanesBrands' digital landscape, business applications, and data infrastructure.

AI-Powered Transformation

At the heart of this partnership is Infosys' commitment to deploying its cutting-edge AI technologies:

• The Live Enterprise Automation Platform (LEAP)
• Infosys Topaz, an AI-first suite of services and solutions

These platforms will leverage generative AI and AIOps technologies to modernize HanesBrands' core operations, enhance agility, simplify its IT landscape, and unlock greater value from data.

Strategic Objectives

The alliance is set to address several key priorities for HanesBrands:

1. Technology optimization
2. Resource efficiency
3. Cultural alignment

Scott Pleiman, Chief Strategy, Transformation, Analytics and Technology Officer at HanesBrands, emphasized the company's search for an experienced collaborator with deep domain expertise in AI-driven transformation. He stated, "As we continue to evolve our operational model, we sought an experienced collaborator with deep domain expertise and advanced capabilities in AI-driven transformation."

Infosys' Commitment

Karmesh Vaswani, EVP & Global Head of Consumer, Retail & Logistics at Infosys, expressed the company's dedication to the partnership: "We are honored to support HanesBrands in its journey toward a future-ready enterprise. With a shared commitment to innovation, we aim to unlock significant business value and elevate customer experiences utilizing Infosys Topaz AI and AIOps capabilities, now further strengthened with LEAP."

Expected Outcomes

The collaboration is poised to deliver several benefits to HanesBrands:

• Modernization of core operations
• Enhanced agility in business processes
• Simplified IT landscape
• Improved data utilization through AI technologies

This strategic alliance underscores the growing importance of AI and digital transformation in the retail and apparel industry. As companies like HanesBrands seek to stay competitive in a rapidly evolving market, partnerships with tech giants like Infosys are becoming increasingly crucial.

The ten-year engagement between Infosys and HanesBrands represents a significant commitment to long-term innovation and operational excellence, potentially setting a new standard for AI-driven transformation in the global apparel industry.