Shares of IT giant Infosys Limited rose over 4 per cent on Tuesday after the company announced that its board will consider a proposal on September 11 for an equity share buyback. 

Infosys shares were trading at Rs 1,496.30, up Rs 63.40 or 4.42 per cent today. The stock rose by Rs 7 over the last five days, marking a 0.47 per cent increase.

The Bengaluru-based IT company plans to spend Rs 13,560 crore on the buyback, priced at an average premium of 25 per cent per share according to multiple media reports.

If approved, this will be the fifth share buyback to be conducted by Infosys. Infosys launched its first share buyback in 2017, valued at Rs 13,000 crore. The last buyback by Infosys was in 2022 when it bought back shares worth Rs 9,300 crore at Rs 1,850 per share.

The IT giant’s cash and cash equivalents for the first quarter FY 26 stand at Rs 45,200 crore, with a net worth of Rs 95,350 crore.

Infosys was the major gainer on Nifty today and the top contributor to the Nifty IT index at market opening, when the index surged over 1.7 per cent.

Of the 50 analysts monitoring Infosys, 35 have issued a ‘buy’ rating, 13 recommend a ‘hold’, and two advise a ‘sell’, according to multiple reports.

The share buyback, or repurchase, reduces the number of outstanding shares and increases the Earnings per Share (EPS) as the profit of the company gets spread over fewer shares after the buyback. A higher EPS can improve stock valuations and attract new investors to the company.

In the past month, Infosys increased by Rs 68.10, a rise of 4.77 per cent. The share price has decreased by Rs 205.15, or 12.06 per cent, over the past six months. Infosys stock has decreased by Rs 398.35 in one year, marking a 21.02 per cent drop.