Open Market Buybacks Return: Which IT Stocks Win

Open Market Buybacks Are Back, and IT Majors Are First in Line SEBI's board has cleared the return of open market buybacks through stock exchanges, effective August 1, 2026. The mechanism was dormant since SEBI killed it via the 2024 circular that forced all buybacks through the tender offer route. Its return gives companies a flexible, price-sensitive tool to return capital. Under the new framework, companies opting for this route must complete the buyback within 66 working days and deploy at least 40% of the earmarked amount in the first 33 working days. That front-loading requirement is the detail that matters most for market participants. The open market route works differently from a tender offer. In a tender, companies announce a fixed price at a premium to the market and shareholders tender shares. In an open market buyback, the company buys from the exchange floor at prevailing prices, which creates a price-support mechanism that's far more dynamic and arguably more beneficial to retail shareholders who stay invested. The 40% front-loading rule pushes companies to be aggressive early in the window. That should translate into visible buying pressure within weeks of any announcement. India's IT sector spent roughly ₹35,000 crore on buybacks in FY23 alone before the tender-only regime softened their enthusiasm. The reintroduction doesn't just revive a mechanism. It brings back a share price management tool that large-cap companies with predictable free cash flows know how to use well. How TCS, Infosys, and HCL Tech Are Positioned [TCS](/stock/TCS) (NSE: TCS) is the clearest candidate. The company closed FY25 with cash and investments of approximately ₹55,000 crore on its balance sheet, generates free cash flow conversion above 95% of net income historically, and has executed multiple buybacks over the past decade totaling well over ₹1 lakh crore cumulatively. Under the open market route, TCS could run a buyback timed to periods of price weakness. That's a ...