What Infosys promoters are not participating in the buyback offer?
Considering the Infosys promoters’ have publicly declared intention to refrain from participating in the Rs. 18,000 crore buyback, which specific founding members and associated entities are non-participating? How this decision supports the company’s commitment to enhance proportionate value for non-promoter public shareholders?
The decision by the Infosys founders not to participate in the company’s largest-ever Rs. 18,000 crore buyback was publicly confirmed through letters submitted in September 2025.
The specific promoter group that opted out includes Narayana Murthy, Nandan M. Nilekani, Sudha Gopalakrishnan, and Rohan Murthy.
Collectively, the Promoter and Promoter Group held an aggregate shareholding of 13.05% at the time of the public announcement.
The decision to refrain from participating supports the company’s commitment to enhancing proportionate value for non-promoter public shareholders. How so?
The core idea is simple: By stepping aside, the company founders make it much easier for ordinary shareholders to sell their stock at the high buyback price.
Since the promoters, who hold about 13.05% of Infosys’s shares, announced they will not participate, their shares are excluded from the total count when calculating the Buyback Entitlement ratio.
This is important because the entire Rs. 18,000 crore buyback pool is now distributed exclusively among the remaining public shareholders.
Because fewer shares are competing for the fixed number of shares being repurchased, each eligible non-promoter shareholder sees a higher guaranteed acceptance percentage (the entitlement ratio). This way they have a much greater chance (acceptance probability) of successfully selling their stock to Infosys at the premium price of Rs. 1,800 per share
Example: How the Higher Entitlement Ratio Works
Think of the buyback as a limited-edition cash prize.
- Fixed Prize: Infosys has a fixed prize pool. It wants to buy back 100 million shares. It represents 2.41% of the company’s total equity.
- Original Participants (The Whole Company): If the promoters participated, all shareholders would be competing. The acceptance ratio would be calculated based on 100% of the total outstanding shares.
- New Participants (Non-Promoters Only): Since the promoters (holding 13.05%) opted out, the shares competing for the buyback are suddenly reduced by that 13.05%.
- Result: The remaining 86.95% of public shares now compete for the same 2.41% fixed prize.
Mathematically, this raises the minimum guaranteed acceptance percentage for every public shareholder.
If a shareholder was originally entitled to sell 10% of their shares, the promoters’ non-participation might boost that entitlement to, say, 12% or 13% (for example). This way, promoters are maximizing the retail investor’s opportunity to lock in the premium of Rs. 1,800 per share.
This benefit is amplified for Small Shareholders (those holding shares worth Rs. 2 lakh or less) who already benefit from a mandatory 15% reservation in the buyback.
Disclaimer: This content is for informational purposes only and should not be considered investment advice.
