New Delhi, Sept. 12 -- The Infosys board approved its biggest-ever buyback after market hours on Thursday. The IT services provider will buy back 100 million shares at Rs.1,800 each, a 19% premium over Thursday's closing price. The Rs.18,000-crore buyback will be the company's first in three years and only its fifth since it was listed in 1993.

Companies use buybacks and dividends to reward shareholders. Historically, Infosys's buybacks have been received positively, with the stock appreciating over the subsequent three to six months. The latest buyback has also lifted sentiment - Infosys stock has risen by almost 7% since the announcement on Monday.

However, the timing of this cash distribution is raising eyebrows. The company's most r...