BALA: NOTHING WRONG IF WE RETURN SHARES

Bengaluru, Aug. 30: Infosys founders participating in the `13,000crore buyback offer does not give any wrong signal to shareholders, the IT giant’s former CFO V. Balakrishnan has said.

Infosys on Monday had said that some of the members of the promoter and promoters group of the company have communicated their intention to participate in the proposed buyback.

“One can have some concern only if founders sell their holding in normal circumstances. Buyback is another form of dividend which is tax efficient in Indian context and hence the founders participating in that does not give any wrong signal to shareholders,” he said.

“Buyback is a pro-rata right given to all shareholders and if exercised by all of them will ensure the economic interests levels of all shareholders remaining at same levels,” he added.

The Bengaluru-based IT company plans to buy back 11.3 crore shares at `1,150 apiece.