Infosys stock gains 5% on buyback plan; mcap up Rs 10,189 cr

The Infosys scrip gained nearly 5

per cent today following the company's announcement that its

board will on Saturday consider a proposal for buyback of

equity shares.

The stock jumped 4.54 per cent to settle at Rs 1,021.15

on BSE. During the day, it had soared 5.33 per cent to Rs

1,028.90.

On NSE, it surged 4.68 per cent to end at Rs 1,020.85.

The stock was the biggest gainer on both the key indices.

The company's market valuation also zoomed Rs 10,189.78

crore to Rs 2,34,554.78 crore.

In volume terms, 5.32 lakh Infosys shares were traded on

BSE and over one crore shares changed hands on the NSE.

"The opportunity from recent correction and the

announcement of share buyback from IT major supported the

sentiment," said Vinod Nair, Head of Research, Geojit

Financial Services Ltd.

Infosys informed BSE that the board of directors of the

company will consider a proposal for buyback of equity shares

at its meeting to be held on August 19, 2017.

It added that the outcome of the board meeting will be

disseminated to the stock exchanges after the conclusion of

the meeting.

Infosys, in April, had said that it will pay up to Rs

13,000 crore to shareholders during the current financial year

through dividend and/or share buyback.

Share buybacks typically improve earnings per share and

is a mechanism to return surplus cash to shareholders while

also supporting share price during period of sluggish market

condition.

(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)