New Delhi: 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 percent 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 on Thursday, 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 percent of fully paid up equity shares of the company, while the buyback size stands at up to Rs 4,000 crore.
"The buyback 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 a special resolution, it said.
As on 11 July 2018, promoter and promoters group held just over 60 percent of the existing equity share capital of the company, while the holding of foreign investors stood at 26.85 percent.
Indian financial institutions along with banks, insurance companies, and alternative investments funds held close to four percent in the company, and Mutual Funds another 5.51 percent. The shareholding of Bodies corporate and trusts and resident individuals stood at about 0.94 percent and 2.45 percent, respectively.
Shares of HCL Technologies closed 1.03 percent higher on the BSE to Rs 1,005.3 apiece on Thursday.
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Updated Date: Jul 13, 2018 08:58:31 IST