ilmscore | Infosys Buyback | Should you Tender your shares? | CA Rachana Ranade

Infosys Buyback | Should you Tender your shares? | CA Rachana Ranade

Published: 2025-09-12
Status: Available | Analyzed

Predictions from this Video

Total: 11
Correct: 11
Incorrect: 0
Pending: 0
Unrated: 0
Prediction
Topic
Status
Small shareholders (holding Infosys stock valued under 2 lakh rupees) will have a higher chance of their shares being accepted in the buyback offer.
"First point you can consider is if you're a small shareholder, if you're holding value of Infosys is below 2 lakh rupees, then your chances of acceptance for buyback is higher."
INFY
Correct
Investors who believe in Infosys' long-term growth and expect the stock price to exceed 1,800 rupees within a year might benefit more from selling at that future price rather than tendering for the buyback due to tax implications.
"if you believe in the growth story of Infosys if you feel that in the longer term Infosys will perform well and if you feel that maybe after one year whatever is the case it will reach 1,800 or even above that then it would make sense to sell at that time only from a taxation perspective"
INFY
Correct
High-income investors should be aware that buyback proceeds will be taxed at their normal income tax slab rate, which could be significantly higher than other capital gains tax rates.
"Number two high income investors be aware right now only I told you entire amount that you receive as buyback is going to be taxed as your normal income. So as per your tax lab"
INFY
Correct
Infosys is offering to buy back shares at a price of 1,800 rupees per share.
"Price is 1,800 rupees per equity share."
INFY
Correct
Infosys plans to buy back equity shares worth 18,000 crore rupees.
"we'll buy back equity shares for an amount of 18,000 cr rupes."
INFY
Correct
The Infosys buyback will encompass 2.41% of the company's total equity capital.
"total percentage wise buyback is going to be 2.41%age of its total equity capital"
INFY
Correct
The Infosys buyback will be conducted through a fixed-price tender offer, not through open market purchases.
"it will be done through a fixed price buyback via tender route. It's not an open market buyback. It's a tender root buyback."
INFY
Correct
Buybacks are now taxed as a deemed dividend under Section 222F of the Income Tax Act.
"now it is taxed as a deemed dividend section 222F."
INFY
Correct
The deemed dividend from the buyback is treated as normal income and taxed at the individual's applicable slab rate.
"This deemed dividend section 222FL deemed dividend that is treated as your normal rate income. It's not a special rate income."
INFY
Correct
The purchase price of shares tendered for buyback can be treated as a short-term capital loss.
"this 15,000 rupees your purchase price basically 1500 into 10 shares correct 15,000 rupees can be treated as your shortterm capital loss."
INFY
Correct
The Infosys buyback is particularly beneficial for individuals in lower tax brackets.
"So I hope you have understood that this one is going to be beneficial for whom? Especially for those who are into comparatively lower tax slabs."
INFY
Correct