New Delhi, Sept. 10 -- Infosys Ltd will consider a buyback of shares on 11 September. This is the fifth time since its public listing in 1993 that the country's second-largest IT services company will undertake such an exercise. The decision comes amid an uncertain demand environment and slow growth for the country's largest IT services firm, along with dwindling share prices since the start of the year. Mint decodes why Infosys conducted a buyback and what it signifies.

In a buyback, companies purchase shares from shareholders and reduce the number of shares in the market. This increases the price of the shares and allows companies to distribute excess cash to shareholders.

Buybacks are optional, where shareholders can choose whether o...