After Infy's share buyback, peers may play catch-up

The ₹18,000-crore share buyback by Infosys may prompt other IT majors such as Tata Consultancy Services (TCS) and Wipro to undertake similar exercises, analysts said.

- URVI MALVANIA

CLSA has said TCS may consider a tender-style buyback of around ₹20,000 crore in the coming quarters instead of opting for a large special dividend, pointing to a broader trend of firms using cash returns to shore up shareholder sentiment. If it happens, it would become the largest buyback.

At ₹18,000 crore, Infosys' upcoming buyback, and TCS' buyback for the same amount in 2023, are the largest so far.

The buyback announcement has also given Infosys' stock some buoyancy. On Friday, the day after the buyback details were announced, its shares closed at ₹1,525.55, up 1.6% compared with the previous close and 5.6% week-to-date.