HCL Tech board clears up to Rs 4000 cr buyback plan

Indian IT company HCL Technologies today said its board has approved up to Rs 4,000 crore buyback plan, involving up to 3.63 crore shares at a price of Rs 1,100 per equity share.

The buyback price translates into a 9.4 per cent premium over Thursday's closing price of HCL Tech shares.

The move by the company comes less than a month after its larger IT peer Tata Consultancy Services approved a plan to buyback shares up to Rs 16,000 crore.

In a regulatory filing today, HCL Technologies said: "...the board of directors of the company, in its meeting held today...have approved the buy-back of up to 3,63,63,636 fully paid up equity shares of the company of face value of Rs 2 each...at a price of Rs 1,100 per equity share payable in cash..." The total number of shares that the company proposes to buy back represents 2.61 per cent of fully paid up equity shares of the company, while the buyback size stands at up to Rs 4,000 crore.

"The buy back is proposed to be made from the shareholders of the company on a proportionate basis, through the tender offer route...," the statement added.

It is subject to the approval of the shareholders of the company through special resolution, it said.

As on July 11, 2018, promoter and promoters group held just over 60 per cent of the existing equity share capital of the company, while the holding of foreign investors stood at 26.85 per cent.

Indian financial institutions alongwith banks, insurance companies and alternate investments funds held close to four per cent in the company, and Mutual Funds another 5.51 per cent. The shareholding of Bodies corporate and trusts, and resident individuals stood at about 0.94 per cent and 2.45 per cent, respectively.

Shares of HCL Technologies closed 1.03 per cent higher on the BSE to Rs 1,005.3 apiece on Thursday.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)