Is Paytm, Infosys Buyback Plan In Line With Shareholders' Interests

• 16-Dec-2022
• 346

Is Paytm, Infosys Buyback Plan In Line With Shareholders' Interests? This will be Infosys's fourth buyback.(File) Buyback activity has been buzzing for a long time. So far this year, 51 companies have announced buybacks worth ₹ 375.2 billion (bn). This compares with 42 companies announcing buybacks in 2021 and amounting to ₹ 143.4 bn, according to data furnished by PRIME Database. AD One of the main reasons for the increase in buybacks is the fall in valuations. So, to instill confidence in investors and return value to them while still making prudent use of funds, management of many companies are choosing buybacks. The Indian stock markets are excited about yet another big buyback – Infosys buyback worth ₹ 93 billion (bn). Infosys had initially announced the buyback plan on 13 October 2022 when it declared its Q2 results. This will be the Bengaluru-based IT company's fourth buyback. Infosys had also announced an interim dividend of ₹ 16.5 per share at that time. All this is in line with Infosys' payout policy to return 85% of its free cashflow to shareholders for the next five years.