Infosys' founders taking part in buyback won't send wrong signal: Ex-CFO Infosys plans to buy back 11.3 crore shares at Rs 1,150 apiece
Infosys founders participating in the Rs 13,000 crore buyback offer does not give any wrong signal to shareholders, the IT giant's former CFO V Balakrishnan has said.
Infosys on Monday had said that some of the members of the promoter and promoters group of the company have communicated their intention to participate in the proposed buyback. "One can have some concern only if founders sell their holding in normal circumstances. Buyback is another form of dividend which is tax efficient in Indian context and hence the founders participating in that does not give any wrong signal to shareholders," Balakrishnan told PTI. He was replying to a question whether founders participating in the buyback offer would send a wrong signal that promoters are taking a bleak view on the company's future. "Buyback is a pro-rata right given to all shareholders and if exercised by all of them will ensure the economic interests levels of all shareholders remaining at same levels," he added. Infosys plans to buy back 11.3 crore shares at Rs 1,150 apiece. The founders and their families between them hold some 12.75 per cent (29.28 crore shares) of Infosys.