Why Infosys Founders Rejected the ₹18,000 Crore Buyback

Infosys recently announced a ₹18,000 crore share buyback at ₹1,800 per share — almost ₹300 above its current market price. Yet, Infosys founders decided not to participate in it. Why? The answer lies in taxes.

In this video, we break down the real reason behind their decision. While a buyback looks attractive on paper, it’s taxed as a dividend at an effective rate of 35.88%, which means shareholders would actually receive only around ₹1,154 per share after tax — much less than the current market price of ₹1,500.

On the other hand, selling shares directly in the market is taxed as capital gains at 14.95%, leaving a much higher post-tax value of ₹1,425 per share. The math clearly shows why participating in the buyback isn’t a great deal for long-term shareholders.

We also explain how bonus shares, capital loss set-offs, and founder decisions impact stock prices — and why the market reacted positively to this move.

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Видео Why Infosys Founders Rejected the ₹18,000 Crore Buyback канала Kirttan Shah