The buyback price offered by the company is Rs 1,150. Therefore, investors can pocket 18 per cent more upside (at current market rate) by tendering their shares. The entitlement ratio for retail shareholders works out to 28 per cent. In other words, 28 shares of those holding 100 shares will get accepted in the buyback.

However, an investor can even tender 100 per cent of their shares. If eligible shareholders abstain from participation, the entitlement ratio goes up.

“A study of the past few tender offers indicate that generally not all the small shareholders participate in the offer and the acceptance ratio is higher than the entitlement ratio,” says HDFC Securities.

The retail-focused brokerage cites the example of the buyback from HCL Technologies where the entitlement ratio was 37.5 per cent but the acceptance ratio was far higher at 68 per cent. HDFC Securities says the share buyback is an opportunity for retail investors to pocket decent returns.

However, those tendering the shares have to bear in mind the tendered shares will be under lock-in till the buyback process is completed. The payout for Infosys buyback is likely to take place on December 26. Shares of Infosys on Thursday ended at Rs 975.