The country's midcap IT companies chiefs are of the view that share buybacks by companies must be backed well with a proper cash expenditure plans.
India's largest software company, TCS, confirmed Wednesday that it would consider doing a buyback on February 20, in line with recent calls by investors that IT companies look for ways to return excess cash to shareholders.
Arvind Thakur, CEO, NIIT Tech said it was fair for investors to seek shareholder returns but the company would be prudent before making decisions on spending cash. In fact, NIIT Tech would prefer to utilise it as investments to access digital platforms.
Similarly, Nitin Rakesh, CEO, Mphasis said the company has been ahead of the market in terms of buyback and investor capital returns. Just two weeks ago, the company had announced a buyback over and above a special dividend. The company is in the process of creating a three-year plan on how best to utilise cash for return to shareholders, said Rakesh.
Mastek Founder and Chairman Ashank Desai sad the company has done several buybacks prior to the demerger of insurance business, but would now be keen to utilise the cash to expand operations through acquisitions.
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