Company: INFY
Filing Date: 2025-07-01
Form Type: 20-F
Source: 0000950170-25-091925
Chunk: 51

Company: Infosys Ltd
Filing Date: 2025-07-01
Form: 20-F
Item: Item 3
Chunk 51
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 company and to the stock exchanges in which the shares of the company are listed.
Further, an acquirer who, together with persons acting in concert with him, holds shares or voting rights entitling them to 5% or more of the shares or voting rights in a target company, is required to disclose changes in shareholding or voting rights, where there has been a change in such holding (from the last reporting) exceeding 2% of the total shares or voting rights of the company. This disclosure must be made within two working days of such acquisition, disposal, sale or receipt of intimation of allotment of such shares to the company and to the stock exchanges on which the shares of the company are listed. This disclosure is required even if such change results in the shareholding falling below 5%.
Accordingly, the Takeover Code may impose conditions that discourage a potential acquirer, which in turn could prevent an acquisition of our company in a transaction that could be beneficial for our equity holders.

Indian regulations may regulate or restrict remittance of ADRs to the holders or the conversion of ADR into Indian equity shares which may impact investor sentiments.

Increase in the dividend distribution tax rate or introduction of new forms of taxes on distribution of profits or changes to the basis of application of these taxes and/or changes to Buyback regulations could adversely affect the returns to our shareholders.

As per the Corporate Policy on Capital Allocation, “Effective from financial year 2025, the Company expects to continue its policy of returning approximately 85% of the free cash flow cumulatively over a 5-year period through a combination of semi-annual dividends and/or share buyback / special dividends, subject to applicable laws and requisite approvals, if any.”
Under this policy, the Company expect to progressively increase its annual dividend per share (excluding special dividends, if any). Free cash flow is defined as net cash provided by operating activities less capital expenditure as per the consolidated statement of cash flows prepared under IFRS. Dividend and buyback include applicable taxes. We declare and pay dividends in Indian rupees. The Finance Act 2020 has replaced the Dividend Distribution Tax with the classical system of dividend taxation wherein dividend income will be taxed in the hands of the shareholders at their respective applicable tax rates. In light of the above changes under the Income Tax Act, a company paying dividends to shareholders is required to withhold tax at the applicable rates prescribed under Indian Income Tax Act read along with the applicable tax treaties with respective countries (together with Multilateral Instrument “