Educational
Share Buybacks Explained: Should You Tender Your Shares?
A share buyback is when a company buys its own shares back from shareholders. Companies often do this to return extra cash and to reduce the number of shares in the market. Let us see how it works using the real Infosys buyback of 2025.
At a Glance
Topic | Infosys buyback (2025) |
Size | ₹18,000 crore, the company's biggest buyback in value |
Shares | Up to 10 crore shares, about 2.41% of equity |
Price | ₹1,800 per share, roughly an 18 to 19% premium to the market price at announcement |
Route | Tender offer |
Record date | 14 November 2025 |
Tender window | 20 to 26 November 2025 |
Entitlement | Small shareholders: 2 shares for every 11 held. Others: 17 for every 706 held |
Small shareholder | Holds shares worth up to ₹2 lakh; 15% of the buyback is reserved for this group |
Demand | More than 500 million shares tendered, five times the offer size |
Promoters | Held 13.05% and chose not to take part |
The Infosys example
Size: ₹18,000 crore, the company's biggest buyback in value.
Shares: up to 10 crore shares, about 2.41% of equity.
Price: ₹1,800 per share. At announcement, this was roughly an 18 to 19% premium to the market price.
Route: tender offer. This means you choose to offer your shares at the fixed price.
Key dates
Record date: 14 November 2025. Only shareholders on the company's list on this date can tender.
Tender window: 20 to 26 November 2025.
Because of T+1 settlement, you had to buy the shares by the day before the record date. Shares bought on the record date itself did not count.
Why not every share is accepted
In a tender offer, the company only takes a set number of shares. Each shareholder has an "entitlement", which is the maximum you may offer. For Infosys, small shareholders could tender 2 shares for every 11 held, and others 17 for every 706 held.
Small shareholders hold shares worth up to ₹2 lakh. They get 15% of the buyback reserved, so their acceptance is usually higher.
Demand was high. More than 500 million shares were tendered, five times the offer size. So only a part of what people offered was accepted. The Infosys promoters, who held 13.05%, chose not to take part.
Should you tender? Think about these 4 things
Premium: Is the buyback price well above the market price?
Acceptance: You may only sell part of your shares. The rest stay with you.
Tax: Buyback tax rules have changed in recent years. Analysts said investors in lower tax slabs could keep more by tendering. Check the latest rule before you decide.
Your view: Do you want to stay invested in the company for the long term?
If you do not tender, you simply keep your shares. Nothing is forced.
A quick tip
A buyback is a sign that a company has spare cash, but it does not guarantee that the share price will rise. Always look at the business, too.
Frequently Asked Questions
What is a share buyback? It is when a company buys its own shares back from shareholders. Companies often do this to return extra cash and to reduce the number of shares in the market.
What is a tender offer? It is a buyback route where you choose to offer your shares to the company at a fixed price.
What is a record date? It is the date on which the company checks its list of shareholders. Only those on the list can tender. For Infosys, it was 14 November 2025, and because of T+1 settlement you had to buy the shares by the day before.
Why are only some of my shares accepted? The company takes a set number of shares, and each shareholder has an entitlement, which is the maximum you may offer. For Infosys, demand was five times the offer size, so only part of what people offered was accepted.
Who is a small shareholder? A shareholder who holds shares worth up to ₹2 lakh. 15% of the buyback is reserved for them, so their acceptance is usually higher.
Do I have to tender my shares? No. If you do not tender, you simply keep your shares. Nothing is forced.
Will the share price rise after a buyback? Not necessarily. A buyback shows a company has spare cash, but it does not guarantee a price rise. Always look at the business, too.
How is a buyback taxed? Buyback tax rules have changed in recent years. Check the latest rule before you decide.
This post is for education only. Infosys is used as a past example and is not a recommendation.
Sources: Infosys filings via Angel One (Nov 2025); Groww (14 Nov 2025); NewsBytes (18 Nov 2025); HDFC Sky (13 Nov 2025); Upstox (19 Nov 2025); Business Standard (Nov 2025); Outlook Business (Nov 2025).
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