Increasingly, companies are looking at tax-efficient ways of returning cash to shareholders and a buyback is seen to be by far the most optimal way. On Thursday, the board of HCL Technologies approved a buyback of up to Rs 4,000 crore at Rs 1,100 a piece.
India's fourth largest software services firm, HCL Technologies, on Thursday said its board has approved a buyback of 3.6 crore shares of the company for a total consideration not exceeding Rs 4,000 crore.
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The buyback price of per share is Rs 1,100.
These fully paid-up equity shares represent up to 14.83 per cent and 11.59 per cent of the fully paid-up equity share capital and free reserves (including securities premium account).
The buyback is subject to the approval of the shareholders by way of a special resolution through postal ballot and all other approvals as may be required, HCL Technologies said in a BSE filing.
It had last year offered buy-back of shares at Rs 1,000 apiece, a 17 per cent premium over its prevailing trading price at that time.
The buyback size was Rs 3,500 crore, representing 16.39 and 13.62 per cent of the aggregate of the fully paid-up equity share capital and free reserves as per the standalone and consolidated audited accounts of the company for the financial year ended March 31, 2016.
(With inputs from PTI)
First Published: IST