Shares of Infosys Ltd. surged nearly 5% on October 23, 2025, after the company announced that its promoters and promoter group — including Nandan M. Nilekani and Sudha Murty — will not participate in its massive ₹18,000-crore share buyback. The decision was interpreted positively by investors, boosting market confidence and making Infosys the top gainer on the Nifty IT, Sensex, and Nifty indices.
About Infosys’ ₹18,000-Crore Buyback
Infosys, on September 11, 2025, had announced its largest-ever buyback worth ₹18,000 crore at a price of ₹1,800 per share, representing a 19% premium over its market price at the time. The move marks the company’s first buyback since 2022, when it repurchased shares worth ₹9,300 crore.
A share buyback is when a company repurchases its own shares from existing shareholders, effectively reducing the number of outstanding shares in the market. This often improves earnings per share (EPS) and signals the company’s financial strength.
Promoters’ Decision to Opt Out
In a stock exchange filing on October 22, Infosys declared that its promoters and promoter group would not participate in the buyback.
As of September 30, 2025, promoters held 14.30% of Infosys shares, while public shareholders owned 85.46%. Among the key promoters:
- Nandan Nilekani: 1.08% stake
- NR Narayana Murthy: 0.40%
- Sudha Murty: 0.91%
- Rohan Murthy: 1.60%
- Akshata Murthy: 1.03%
- Kris Gopalakrishnan: 0.84%
- Sudha Gopalakrishnan: 2.52% (largest promoter holding)
This collective decision not to sell their shares during the buyback signals strong faith in Infosys’ long-term growth.
Why It’s Good News for Retail Investors
Experts say this move is a big positive for retail shareholders.
“Promoters opting out of the buyback signals confidence in the company’s future prospects and improves the entitlement ratio for retail investors,”
— Saurabh Jain, AVP, Retail Equities, SMC Global.
Since promoters are not cashing out, more buyback shares are available for public shareholders, giving retail investors a higher chance to tender their shares at the premium buyback price.
“This move adds to the overall investor bullishness in the IT sector,”
— Anita Gandhi, Founder, Arihant Capital Markets.
In short, the decision shows the promoters believe in the company’s future, while enhancing benefits for small investors who participate in the buyback.
Infosys Share Price Performance
Infosys shares have been up 6% in the past five days and 3% in the last month, trading at ₹1,543.90 per share as of Thursday. Despite this short-term rally, the stock remains down over 18% in 2025. The company’s P/E ratio currently stands at 22.23, reflecting moderate valuation compared to peers.
Infosys Q2 FY26 Highlights
Infosys reported Q2 FY26 net profit of ₹7,364 crore, up 13.2% year-on-year from ₹6,506 crore in Q2 FY25.
- Revenue from operations: ₹44,490 crore (+8.5% YoY)
- Operating margin: 21%
- Free cash flow: $1.1 billion (131.1% of net profit)
- Large deal TCV: $3.1 billion (67% net new)
- Employee addition: +8,203
- Interim dividend: ₹23 per share (record date: October 27, 2025)
These solid financials further reinforce the promoters’ confidence and justify their decision not to sell shares.
Bottom Line
Infosys’ promoters choosing not to participate in the ₹18,000-crore buyback sends a clear signal of confidence in the company’s growth trajectory. It not only strengthens retail investor sentiment but also reflects the promoters’ long-term commitment to the company’s success. With robust earnings and a large buyback on the horizon, Infosys remains one of the most watched IT stocks in India.