HCL Tech’s shareholders will have to approve the buyback proposal once it has gone through the board.
Moneycontrol had first reported that the Noida-headquartered IT major may undertake the exercise on February 22.
"We keep looking at options to increase shareholder value. We are open to a share buyback. We will go to the Board once we have decided on it," an official privy to the developments at the IT company had told Moneycontrol then.
HCL Tech’s shareholders will have to approve the buyback proposal once it has gone through the Board. HCL had cash and cash equivalent of Rs 2,214.5 crore as on December 31 besides fixed deposits of Rs 10,506.9 crore.
The company has an equity base of 1.41 billion shares and has paid out dividends for the last 56 consecutive quarters.
The TCS share buyback, announced by the country's largest software exporter on Monday, is so far the largest by an Indian company.Faced with several headwinds, there could be more software exporters working on a share buyback. Continued uncertainty in the European market due to Brexit besides the general weakness in that market, anxiety over the H1B visa rules governing foreign workers in the US, high visa costs, delays in decision-making by the clients are some of the challenges facing Indian IT companies.