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