Infy buyback offer

I ve received mail from Infosys nd I’ve infy share. But I know that what’s the actual benefits of it

Hi Sandip,

A buyback can be seen as a method for company to invest in itself by buying shares from other investors in the market. Buybacks reduce the number of shares outstanding in the market, however buyback of shares is an important method of corporate restructuring. There could be many reasons why corporate choose to buy back shares…

Improve the profitability on a per share basis
To consolidate their stake in the company
To prevent other companies from taking over
To show the confidence of the promoters about their company
To support the share price from declining in the markets
When a company announces a buy back, it signals the company’s confidence about itself. Hence this is usually a positive for the share price.

Source: Varsity from Zerodha on the following link:


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