HCL Technologies announces Rs 3,500 crore share buyback

Bengaluru: HCL Technologies, the fourth largest Indian IT services company, said it would buyback Rs 3,500 crore of shares, becoming the latest company in the sector to seek to boost investor returns through a share repurchase.

The company will buyback a little under 2.5% of its fully paid-up equity shares outstanding, it said in a filing to the BSE.

“The board of directors of the company has approved a buyback of up to 3.5 crore of fully-paid equity shares at a price of Rs 1,000 per equity share,” HCL Technologies said in the filing.

The buyback represents 16.39% of the company’s fully paid up equity share capital and 13.6% of its free reserves, it said.

HCL Tech’s buyback follows those by larger rivals Tata Consultancy Services and Cognizant. Infosys has asked shareholders to approve an amendment to its articles of association to allow it to buyback shares.