Moneycontrol
Mar 20, 2017 02:45 PM IST | Source: Moneycontrol.com

HCL Tech shares hit 52-week high ahead of board meeting to consider buyback proposal

Analysts feel the company can buy back 10 percent of its paid up equity shares without shareholders' approval and the buyback size for 10 percent equity may be USD 450 million.

HCL Tech shares hit 52-week high ahead of board meeting to consider buyback proposal

Moneycontrol News

HCL Technologies shares hit a fresh 52-week high of Rs 879.15 on Monday, up 1.6 percent ahead of board meeting to consider a buyback proposal.

"A meeting of the board of directors of the company will be held on March 20, to a proposal for buyback of the equity shares of the company. Trading window for trading in the securities will remain closed up to the close of business on March 22," the IT firm said in its filing on March 15.

Analysts feel the company can buy back 10 percent of its paid up equity shares without shareholders' approval and the buyback size for 10 percent equity may be USD 450 million.

If company goes for buyback of 25 percent of paid up equity shares, then the size could be USD 1.1 billion but analysts feel this is unlikely given company's cash balance.

As of December 2016, HCL Technologies has cash of USD 1,885 million on its books.

The company followed TCS and Cognizant in announcing share buyback. Recently, the Tata Group company announced buyback of shares worth around Rs 16,000 crore and Nasdaq-listed IT company Cognizant Technology Solutions will return USD 3.4 billion to shareholders through buyback over the next two years.

At 13:35 hours IST, the stock was quoting at Rs 867.60, up Rs 2.30, or 0.27 percent on the BSE.
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