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  Business   Companies  29 Aug 2017  NRN and Co to take part in buyback

NRN and Co to take part in buyback

THE ASIAN AGE.
Published : Aug 29, 2017, 2:15 am IST
Updated : Aug 29, 2017, 2:15 am IST

According to the latest data available with the stock exchanges, there are nineteen shareholders listed under the promoter.

 the shares of Infosys got a major boost rallying over 3 per cent on the BSE after its co-founder Nandan Nilekani assumed charge as the non executive chairman of the board.(Photo: PTI)
  the shares of Infosys got a major boost rallying over 3 per cent on the BSE after its co-founder Nandan Nilekani assumed charge as the non executive chairman of the board.(Photo: PTI)

Mumbai: India’s second biggest IT firm Infosys on Monday informed that some of its promoters would participate in the company’s Rs 13,000 crore share buy back plan announced just a day after Vishal Sikka stepped down from the post of CEO. The board of Infosys had approved buy back of upto 11,30,43,478 crore shares aggregating 4.92 per cent of the paid-up equity capital from investors at Rs 1,150 a piece.   

According to the latest data available with the stock exchanges, there are nineteen shareholders listed under the promoter and promoter group holding 29.28 crore shares accounting for 12.75 per cent equity stake in the company. “We would like to inform you that some of the members of the promoter and promoter group of the company have communicated their intention to participate in the proposed buyback,” the company said.

While to participate or not to participate in a company’s share buy back plan is an individual decision of the respective shareholder, experts feel that the decision of some of the promoters to participate under the current situation could give negative signal to investors.

“Under the current circumstances, promoters abstaining from participating in the share buy back programme would have boosted market sentiments as it would signal that the stock is currently under-valued and the strong medium-term growth trajectory of the company would ensure that the stock price is much higher than the current levels going forward,” said Ajay Bodke, CEO and chief portfolio manager (PMS) at Prabhudas Lilladher.

On Monday, the shares of Infosys got a major boost rallying over 3 per cent on the BSE after its co-founder Nandan Nilekani assumed charge as the non executive chairman of the board.

Welcoming the move, both domestic as well as foreign brokerage houses said that the return of Mr Nilekani along with the company’s share buy back programme would provide the much needed stability to the stock prices in the near term.

“This brings stability to the board, alleviates acrimony with the founders leading to CEO exit last week and eases concerns of potential CEO candidates, the next step in the repair,” said analysts at broking firm Jefferies.

Tags: infosys, vishal sikka, nandan nilekani