Introduction

Infosys’ ₹18,000 crore buyback at ₹1,800 per share is more than just a reward for long-term shareholders, it also opens a short-term window of opportunity for tactical investors.
As per the company’s postal ballot notice, the indicative record date is November 14, 2025. Investors holding Infosys shares in their demat accounts on this date will be eligible to participate in the buyback.
This article explains the concept of buyback arbitrage and illustrates how investors can evaluate potential returns and breakeven levels using a simple data-backed example.

What Is Buyback?

A buyback is a Corporate Action when a company offers to purchase its shares at a premium to the current market price.

By purchasing shares from the market and tendering them in the buyback, investors can earn a risk-adjusted spread if a certain percentage of their shares are accepted. The profit depends mainly on two factors:

• Acceptance Ratio – how many of your tendered shares are accepted by the company.
• Price Movement – where the market price trades during and after the buyback period.

Illustrative Example: Infosys Buyback (Qty = 100 Shares)

Expected Acceptance Ratio	Accepted Shares	Remaining Shares	Buyback Gain (₹)	Final P&L (₹)	Investment (₹)	ROI (%)	BEP (₹)
5 %	5	95	1,650	1,650	1,47,000	1.12%	1,452.63
10 %	10	90	3,300	3,300	1,47,000	2.24%	1,435.26
15 %	15	85	4,950	4,950	1,47,000	3.37%	1,417.89

Interpretation

• Even with a modest 5% acceptance ratio, the trade remains marginally profitable because the buyback price is significantly higher than the CMP.
• As the acceptance ratio increases to 10–15%, the ROI improves from 1.1% to 3.4%, which can be attractive for short-term investors.
• The breakeven zone lies between ₹1,417–₹1,452, providing a cushion of around 1–2% from the entry price of ₹1,470.

Want to know how traders are profiting from the buyback? Read our post on the Infosys Buyback Arbitrage strategy to learn more.

Important to Note

• Indicative Record Date: 14th November 2025, as specified in the Company Postal Ballot Notice.
• Assumptions: The above calculations do not take into consideration brokerage, statutory levies, or exchange transaction charges.
• The results shown are for illustration purposes only; actual outcomes may differ depending on the acceptance ratio and market movement.
• Investors may incur losses if the stock price falls below the breakeven levels indicated in the table.

Why Investors Consider Buyback Arbitrage

• Low Market Correlation – Returns depend more on the acceptance ratio than on broad-market volatility.
• Defined Time Horizon – The event typically concludes within a few months, making it a short-duration strategy.
• Limited Capital Requirement – Retail investors can participate with moderate quantities, as shown in this 100-share illustration.
• Event-Based Opportunity – Ideal for those looking for disciplined, low-risk, tactical positions rather than daily trading.

Key Considerations and Risks

• Acceptance Uncertainty: The final ratio varies across investor categories and can be lower than estimates.
• Price Fluctuation: If the market price falls substantially below ₹1,400, short-term losses may occur.
• Taxation: Buyback proceeds are subject to applicable tax provisions and TDS.
• Execution: Investors should tender shares within the buyback window and verify acceptance through their brokers.

Conclusion

The Infosys buyback presents a clear event-driven opportunity for investors who approach it with discipline and proper execution. Even under conservative assumptions, a 1–3% short-term ROI is achievable, making it an attractive tactical play in an otherwise range-bound market.

At Jainam Broking Ltd., we aim to empower investors with research-driven insights, helping them make informed decisions and navigate corporate actions with confidence.

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