Indian multinational IT service company, HCL Technologies Limited, proposes share buyback offer at Rs 1,000 share apiece, at 17 percent premium for Rs. 3,500 Cr, on a proportionate basis via a tender offer process, HCL Technologies said in a regulatory filing.
The buyback size is Rs. 3500 Cr, representing 16.39 percent and 13.62 percent of the aggregate of the fully paid up equity share capital and free reserves as per the standalone and consolidated audited accounts for the fiscal ended 31 March 2016, said HCL. Buyback offer price is 17 percent higher than the present trading price of the stock at Rs. 852.35/ share.
The IT companies across India have been under stress to return excess cash on their books to shareholders via generous dividends and buybacks. India’s largest software company TCS (Tata Consultancy Services Ltd) also announced its Rs. 16,000 Cr, mega buyback offer, earlier this month, which is currently in progress. Infosys Limited has also announced its capital allocation policy to return up to Rs. 13,000 Cr, this fiscal through dividend plus buyback.