Nilekani to take home Rs 667 crore from buyback

Infosys Chairman and co-founder Nandan Nilekani and his family members are set to take home a whopping Rs 667 crore from the company’s buyback of shares.

The company is spending Rs 13,000 crore to buy back shares and has fixed November 1, 2017 as record date for the buyback.

The Nilekani family has offered to tender 58 lakh shares of 11% of their total holdings in the company. Of the total Rs 13,000 crore, Nilekani family would be taking a large chunk of 5.13%. Nilekani himself would be taking home Rs 241 crore by offering 21 lakh shares, according to a regulatory disclosure by the company.

The collective market value of Nilekani family’s holding in Infosys stands at Rs 4,932 crore as per Tuesday’s market value.

Murthy family, headed by NR Narayana Murthy would be taking home 4.79% of the pie available for the buyback. The family would be richer by Rs 623.05 crore. They have offered 54.18 lakh shares. The family’s market value of Infosys’ holdings stands at Rs 7,391.4 crore on Tuesday’s market close.

Murthy, who was at the forefront of criticism against previous board of the company, alone has offered 7.19 lakh shares, which will fetch him Rs 82.65 crore.

Murthy’s daughter, Akshata Murthy has tendered 20 lakh shares, which is second highest after Nandan Nilekani among the promoter families.

However, another co-founder SD Shibulal, who was CEO of the IT major between 2011 and 2014, will not be selling any shares held by him.

The promoters won’t attract any Long Term Capital Gains Tax on this buyback as all of them have held these shares for more than one year.

However, a Securities Transaction Tax (STT) of 0.2% would be auto-deducted when promoters receive the amount from buyback, an analyst said.

The promoter shareholders group, that amounted for 12.75% of the shareholding in the company, have their shareholding valued at Rs 27,394.94 crore collectively.

The shares tendered by the promoter group in the buyback amounts to 38.61% of their shareholdings in the company.

The shares tendered by the promoters have been bought by them at zero prices, through various bonus issues initiated by the company, spanning from 2004 to 2015.

With this, the shareholding of the promoter’s group will come down by more than 400 basis points to 8.23%.