BUY­BACK AND BOOST

Business Today - - THE BUZZ - - Ruk­mini Rao

WITH THE SEBI

stip­u­lated one-year mora­to­rium com­ing to an end in De­cem­ber 2018, mar­ket an­a­lysts ex­pect In­dia’s se­cond largest IT ex­porter In­fosys to an­nounce a share buy­back to boost in­vestor sen­ti­ment. The an­nounce­ment could hap­pen along­side the third quar­terly re­sults of the com­pany. At the be­gin­ning of the year, In­fosys had com­mit­ted to re­turn­ing 70 per cent of free cash flow and out­laid $2 bil­lion to be re­turned to share­hold­ers, of which $400 mil­lion is to be paid as spe­cial div­i­dends. Last year the com­pany an­nounced its first ever buy back and re­pur­chased over 110 mil­lion eq­uity shares to­talling around

` 13,000 crore. Given In­fosys' con­ser­va­tive na­ture and with no prior his­tory of a bil­lion dol­lar ac­qui­si­tion, most an­a­lysts be­lieve that a buy­back is the best op­tion to re­turn cash and im­prove earn­ings per share.

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