Infosys to tweak
Articles, likely to announce share buyback soon
After Tata Consultancy Services, the country’s second largest software company Infosys may soon announce it’s first-ever share buyback. The company has sought shareholders’ approval to tweak its Articles of Association, which may include a provision for a buyback. After Tata Consultancy Services , the country’s second largest software company Infosys may soon announce its first-ever share buyback. The company has sought shareholders’ approval to tweak its Articles of Association, which may include a provision for a buyback. Media reports suggest the company could look at a buyback of around USD 2.5 billion (roughly Rs 12,000-13,000 crore) in April or May and it is believed that the promoters, led by founder and former chief NR Narayana Murthy, may be in favour of the move. Earlier this week, industry leader TCS announced buyback worth up to Rs 16,000 crore at Rs 2,850 per share, a 11 percent premium to the market price on the day. It was preceded by Cognizant, while HCL Tech also said it was exploring the possibility of a buyback.
Information technology companies, which have been flush with funds with no significant investment opportunities amid multiple global headwinds, have been facing pressure from investors to consider generous dividends or share buyback to boost earnings per share. Infosys has liquid assets, including cash and cash equivalents and investments worth Rs 35,697 crore (about USD 5.25 billion) on its books at the end of December 2016. Two former CFOs of Infosys -- TV Mohandas Pai and V Balakrishnan – recently pressed institutional investors in the company to raise questions about the huge cash pile on the company's books, saying investors have an obligation to protect their investment. Peer pressure and genuine lack of opportunities in a growth-starved business environment may lead Infosys to follow industry peers. In a recent conference call with analysts, Chief Executive Officer Vishal Sikka said the company looks at capital allocation constantly and that no options are off the table. Chief Operating Officer UB Pravin Rao also told CNBC-TV18 last week that the company was not averse to a buyback
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After Tata Consultancy Services, the country’s second largest software company Infosys may soon announce it’s first-ever share buyback. The company has sought shareholders’ approval to tweak its Articles of Association, which may include a provision for a buyback. After Tata Consultancy Services , the country’s second largest software company Infosys may soon announce its first-ever share buyback. The company has sought shareholders’ approval to tweak its Articles of Association, which may include a provision for a buyback. Media reports suggest the company could look at a buyback of around USD 2.5 billion (roughly Rs 12,000-13,000 crore) in April or May and it is believed that the promoters, led by founder and former chief NR Narayana Murthy, may be in favour of the move. Earlier this week, industry leader TCS announced buyback worth up to Rs 16,000 crore at Rs 2,850 per share, a 11 percent premium to the market price on the day. It was preceded by Cognizant, while HCL Tech also said it was exploring the possibility of a buyback.
Information technology companies, which have been flush with funds with no significant investment opportunities amid multiple global headwinds, have been facing pressure from investors to consider generous dividends or share buyback to boost earnings per share. Infosys has liquid assets, including cash and cash equivalents and investments worth Rs 35,697 crore (about USD 5.25 billion) on its books at the end of December 2016. Two former CFOs of Infosys -- TV Mohandas Pai and V Balakrishnan – recently pressed institutional investors in the company to raise questions about the huge cash pile on the company's books, saying investors have an obligation to protect their investment. Peer pressure and genuine lack of opportunities in a growth-starved business environment may lead Infosys to follow industry peers. In a recent conference call with analysts, Chief Executive Officer Vishal Sikka said the company looks at capital allocation constantly and that no options are off the table. Chief Operating Officer UB Pravin Rao also told CNBC-TV18 last week that the company was not averse to a buyback
Read more for Best Stock Tips- http://bit.ly/ace_services
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