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A day after Sikka's exit, Infosys decides to buy back shares up to Rs 13,000 crore

| | Aug 19, 2017, at 07:37 pm
Mumbai, Aug 19 (IBNS) : A day after the exit of Vishal Sikka as CEO, the Infosys Board on Saturday approved a share buyback programme of up to Rs 13,000 crore, reports said.

Infosys, India's second biggest IT firm, said that it would buy back shares up to Rs 13,000 crore at a fixed price of Rs 1,150 per share.

The buyback comes in the wake of  the resignation of Vishal Sikka, who was embroiled in a feud with the company founders. Sikka  cited "continuous stream of distractions and disruptions" among reasons for quitting- a development that augured crisis in the prestigious organisation, headquartered in Bengaluru.

Sikka's resignation did not augur well for Infosys with the company shares crashing by 9.6 per cent in a single day with investors selling off scrips.

The buyback is a way of rewarding shareholders in an efficient and cost-effective manner. A buyback allows companies to invest in themselves.

Buyback leads to a reduction of the number of shares outstanding on the market, which in turn increase the proportion of shares a company owns.

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