Infosys Buyback 2025: Dates, Price, Tax Rules & How to Tender Shares

Infosys Buyback 2025| Infosys buyback tax implications| Infosys buyback record date| how to tender shares in Infosys buyback| Infosys buyback entitlement ratio

The Indian IT giant Infosys has launched its massive ₹18,000 Crore share buyback, which officially opens for tendering on Thursday, November 20, 2025.

For shareholders, this is a golden opportunity to sell shares at a premium price of ₹1,800. However, unlike previous years, the rules of the game have changed significantly—especially regarding taxation.

If you are holding Infosys shares as of the record date (November 14, 2025), this report is your ultimate handbook. We will cover everything from critical dates and entitlement ratios to the new October 2024 tax regime that could impact your actual profits.

📊 At a Glance: Infosys Buyback 2025 Highlights

Feature	Details
Buyback Price	₹1,800 per share
Current Market Price (CMP)	~₹1,550 (approx. 16% premium)
Total Buyback Size	₹18,000 Crores
Type of Buyback	Tender Offer (Not Open Market)
Total Shares to Buy	10 Crore Shares (~2.41% of equity)
Retail Reservation	15% (Reserved for holdings ≤ ₹2 Lakhs)
Promoter Participation	NO (Promoters are not selling)

📅 Critical Timeline: Do Not Miss These Dates

Mark these dates in your calendar. Missing the tender window means losing the opportunity to participate.

• Record Date: November 14, 2025 (Eligibility determined on this day).
• Buyback Opening Date: November 20, 2025 (Window opens).
• Buyback Closing Date: November 26, 2025 (Window closes at 3:30 PM / 5:00 PM depending on broker).
• Settlement Date: December 3, 2025 (Payment credited to bank account).
• Return of Unaccepted Shares: December 3, 2025 (Shares credited back to Demat).

⚠️ Urgent: You must place your bid (tender your shares) between Nov 20 and Nov 26. It is not automatic.

💰 The New Tax Trap: Rules After October 1, 2024

This is the most critical section of this report. The Union Budget 2024 changed how buybacks are taxed effectively from October 1, 2024.

1. The Old Rule (Pre-Oct 2024)

Previously, companies paid a buyback tax (~23%) before distributing money. The amount received by shareholders was tax-free in their hands.

2. The New Rule (Effective Now)

The entire burden has shifted to the shareholder.

1. Deemed Dividend: The full amount you receive (i.e., ₹1,800 × Accepted Shares) is treated as Dividend Income.
   • This is added to your annual income.
   • It is taxed at your applicable slab rate. (If you are in the 30% slab, you pay 30% + cess on the full ₹1,800 per share).
   • TDS: The company will deduct 10% TDS on the payout if it exceeds ₹5,000.
2. Capital Loss: Since you “sold” the share but the income is treated as a dividend, your original purchase cost becomes a Capital Loss.
   • Capital Loss Value = Your Original Buy Price × Accepted Shares.
   • Usage: You CANNOT set this loss off against the “Dividend Income” from the buyback.
   • You can only set it off against other Capital Gains (e.g., profit from selling other stocks, mutual funds, or property).
   • You can carry this loss forward for 8 years.

📝 Real-Life Tax Calculation Example

Let’s assume you hold 100 shares of Infosys bought at ₹1,400. You tender them, and 20 shares are accepted at ₹1,800. You are in the 30% Tax Bracket.

• Step A: Income Calculation (Dividend)
  • Payout Received: 20 shares × ₹1,800 = ₹36,000
  • This ₹36,000 is added to your income.
  • Tax Payable (30% + 4% cess): ₹36,000 × 31.2% = ₹11,232
• Step B: Capital Loss Calculation
  • Original Cost of accepted shares: 20 shares × ₹1,400 = ₹28,000
  • You now have a Capital Loss of ₹28,000.
  • Note: This loss sits in your tax file. It does not reduce the ₹11,232 tax you pay immediately unless you have other capital gains to offset it against this year.
• Net Cash in Hand (After Tax):
  • ₹36,000 (Payout) – ₹11,232 (Tax) = ₹24,768
  • Effective realized price per share: ₹1,238 (This is significantly lower than the ₹1,800 headline price due to the tax structure for high earners).

Verdict on Tax: If you are in a high tax bracket and do not have other capital gains to offset the loss, the buyback is less attractive. If you are in a low tax bracket (e.g., income < ₹7 Lakhs), it remains highly profitable.

📉 Entitlement Ratio vs. Acceptance Ratio

It is crucial to understand the difference between what you are guaranteed to sell vs. what you might be able to sell.

1. Entitlement Ratio (Guaranteed)

Infosys has officially announced the entitlement ratios based on the Record Date (Nov 14).

• Retail Category (Holding ≤ ₹2 Lakhs):
  • Ratio: 2 shares for every 11 held (~18.18%).
  • Example: If you hold 55 shares, you are guaranteed to sell 10 shares.
• General Category (Holding > ₹2 Lakhs):
  • Ratio: 17 shares for every 706 held (~2.41%).

2. Acceptance Ratio (Probable)

Historically, many shareholders do not participate in buybacks (due to laziness, ignorance, or misplaced shares). This leaves room for active investors to sell more than their entitlement.

• Promoters are NOT participating: This is excellent news. The 13.05% promoter stake will not compete with you. This naturally boosts the acceptance ratio for public shareholders.
• Expected Retail Acceptance: Analysts predict the final acceptance ratio for retail could range between 25% to 40%.
• Strategy: ALWAYS tender 100% of your shares, even if your entitlement is lower. If other people don’t participate, your additional shares will be picked up in the “General Pool.”

🚀 Step-by-Step Guide: How to Tender Shares

You cannot sell these shares in the open market for ₹1,800. You must use the “Tender Offer” mechanism provided by your broker.

For Zerodha Users (Kite)

1. Login to Zerodha Console (console.zerodha.com).
2. Go to Portfolio > Corporate Actions.
3. Hover over “Infosys Buyback” and click on Place Order.
4. Enter the quantity (Suggestion: Enter your full holding quantity, not just entitlement).
5. Click Submit.
6. Authorization: You will be redirected to CDSL. Enter your TPIN and OTP to authorize the transfer.

For Groww Users

1. Open the Groww App/Web.
2. Search for “Infosys” or go to your Holdings.
3. Look for a notification or “Corporate Action” tag, or visit the Help/Support section to find the Buyback link.
4. (Alternatively, check email from Groww for a direct link).
5. Enter shares to tender and authorize via CDSL TPIN.

For Upstox Users

1. Login to the Upstox mobile app or website.
2. Go to Account section > Actions > Corporate Actions.
3. Select Infosys Buyback.
4. Click Apply. Enter the quantity.
5. Complete the CDSL TPIN verification.

For Angel One Users

1. Go to Portfolio > Equities.
2. Click on Offers / Corporate Actions.
3. Select Buyback.
4. Enter Quantity and confirm.

🧠 Investment Strategy: Should You Participate?

✅ YES, Participate If:

1. You are a Retail Investor: The 15% reservation gives you a huge advantage.
2. You are in a Lower Tax Bracket: If your income is below the taxable limit or in the 10-15% slab, the ₹1,800 price is a fantastic exit.
3. You have other Capital Gains: If you booked profit in other stocks this year, the “Capital Loss” from this buyback can reduce your tax bill on those profits.

❌ Think Twice If:

1. You are in the 30% Tax Slab: The tax drag is heavy. Calculate your net benefit.
2. You bought shares recently at ₹1,550+: Your profit margin is thin after tax.
3. You want to hold Infosys for 10 years: If you believe Infosys will cross ₹2,000 soon organically, you might prefer to avoid the tax hassle and just hold.

❓ Frequently Asked Questions (FAQs)

Q1: I bought Infosys shares on November 14. Am I eligible? No. Due to the T+1 settlement cycle, you needed to buy shares by November 13 for them to be in your Demat account by the Record Date (Nov 14).

Q2: Can I tender more shares than my entitlement? Yes! You should always tender all your shares. If the buyback is under-subscribed (which often happens), your extra shares may be accepted.

Q3: What happens to shares that are NOT accepted? They will be returned to your Demat account on December 3, 2025. You can sell them in the open market later or keep holding them.

Q4: Will I get the full ₹1,800 in my bank account? Generally, the company deducts TDS (10%) before crediting the amount if the payout is >₹5,000. You will receive the balance. You must then pay the remaining tax (based on your slab) when filing your ITR.

Q5: Is this a good time to buy fresh shares for the buyback? No. The record date (Nov 14) has passed. Buying shares now will not make you eligible for this buyback.

🏁 Conclusion

The Infosys Buyback 2025 is a strong signal of management confidence, returning cash to shareholders despite a challenging global IT environment. The price of ₹1,800 is attractive, offering a solid premium over the current market price.

However, the new taxation rules have complicated the equation. It is no longer a “no-brainer” arbitrage for high-net-worth individuals. But for the small retail shareholder, specifically those with holdings under ₹2 Lakhs, this remains a compelling opportunity to book profits and re-enter the stock later if desired.

Action Item: Log in to your broker account between Nov 20 and Nov 26 and place your tender order. Don’t leave money on the table!

Disclaimer: This report is for informational purposes only and does not constitute financial advice. Please consult a tax advisor regarding the specific implications of the new buyback tax rules on your portfolio.

Infosys Buyback 2025| Infosys buyback tax implications| Infosys buyback record date| how to tender shares in Infosys buyback| Infosys buyback entitlement ratio

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