Promoters' stake in Infosys rises post buyback

Promoters' stake in Infosys rises post buyback

The Rs 13,000 crore buyback programme of Infosys, which concluded last week, has seen the shareholding of its promoters increase, albeit marginally.

Although, the absolute number of shares held by the promoters has declined from 29.28 crore to 28.17 crore, it has, however, increased by 15 basis points in percentage terms to 12.90% owing to a decrease in the total shareholding of the IT major.

The increase of shareholding from 12.75% comes at a time when the management and the promoters of the company had recently been on loggerheads with each other.

Among the top 10 beneficiaries of the buyback, featured two promoter group members.

The company has bought back 15 lakh shares (1.33% of the total shares bought back) from Sudha Gopalakrishnan, wife of Kris Gopalakrishnan, making her richer by Rs 172.5 crore. Rohan Murty, son of N R Narayana Murthy, is the other promoter group member to feature among top 10 beneficiaries. The company bought back 13.93 lakh shares (1.23%) from him yielding Rs 160.2 crore.

After the buyback, the total networth of promoters' stake at Infosys is pegged at Rs 29,252.03 crore, as per Friday's market close rates.

The buyback offer rolled out by the company has been a massive hit, with 499.89% response from the shareholders. For 11.30 crore shares reserved for the buyback, there were 56.51 crore valid shares tendered by the shareholders.

The response to the buyback by the institutional and large shareholders was far higher than the small shareholders. For 1.7 crore shares reserved for their buyback, small investors tendered 3.04 crore, with a response of 179.11%. However, other shareholders tendered 53.47 crore shares, with a response of 556.5%.

The biggest beneficiary of the buyback has been the Life Insurance Corporation of India (LIC). The IT bellwether has bought back 68.14 lakh shares held by the LIC. This will lead to a cash flow of Rs 703.09 crore for the insurance giant. The LIC took a major portion of 5.41% of the shares bought back by the IT major.

Post the buyback, along with market capitalisation, the company's paid up equity capital is now down by 4.88% to Rs 1,092 crore, from Rs 1,148 crore.

 

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