Infosys Founders Decline ₹18,000 Crore Share Buyback Amid Strategic Focus

Infosys founders opt out of ₹18,000 crore buyback, signaling strategic restraint amid market optimism

In a notable development for India’s tech sector, Infosys founders have opted out of participating in the company’s recently announced ₹18,000 crore share buyback program. The move, confirmed through stock exchange filings, signals a strategic stance by the founding members, including Nandan Nilekani, Narayana Murthy, and other early stakeholders, who chose not to tender their shares despite the attractive premium offered.

The Infosys share buyback, approved by the board, is part of the company’s capital allocation strategy aimed at enhancing shareholder value. The buyback price was set at ₹1,670 per share, representing a significant premium over the prevailing market price. However, the decision by the founders to abstain from the offer has sparked discussions around long-term vision and corporate governance.

According to market analysts, the founders’ decision reflects confidence in the company’s future growth trajectory and a commitment to sustained value creation. By not tendering their shares, they avoid short-term gains and instead reinforce their belief in Infosys’s strategic roadmap. This move also ensures that retail and institutional investors benefit more directly from the buyback, potentially boosting sentiment among public shareholders.

Infosys has consistently maintained a robust capital return policy, and this buyback marks its fourth such initiative in recent years. The company’s strong cash reserves and stable earnings have enabled it to pursue shareholder-friendly actions while continuing to invest in innovation and global expansion.

The founders’ abstention also aligns with broader trends in corporate India, where legacy stakeholders are increasingly prioritizing long-term stability over immediate financial returns. It sends a message of trust in the current leadership and operational strategy, especially as Infosys navigates global headwinds and digital transformation demands.

As the Infosys stock continues to attract investor interest, this buyback—despite the founders’ non-participation—could serve as a catalyst for renewed market confidence. The move underscores Infosys’s commitment to transparency, strategic discipline, and shareholder inclusivity.