Infosys’ Rs13,000cr buyback offer opens today and will end on December 14, 2017. The company in its offer letter dated November 20, 201, had announced a buyback of up to 11.3cr shares at price of Rs1,150 for the amount not exceeding Rs13,000cr. The Offer Size is 20.51% of total fully paid-up share capital. The record date for the determining the eligible shareholder was November 1, 2017.

The buyback which is being implemented through the tender offer route is aimed at benefitting smaller shareholders and the reservation for shareholders holding shares worth not more than Rs2lakh as on record date was ~1.7cr share or 15% of the overall offer.

As per the announcement, the entitlement ratio for the smaller shareholders (reserved category) is 23 equity shares for every 81 fully paid-up equity shares. The same for general category is seven equity shares for every 163 fully paid-up equity shares.

At the current market price of Rs989, investors can book some gains by tendering shares in the offer and covering the same in open market as Infosys is trading at attractive valuations. This is because most of the negatives related to future strategy are believed to be largely factored in the stock price. With almost similar growth profile as Industry leader, Infosys is trading at ~20% discount to TCS and 6-8% discount to the industry.