HCL Technologies shares advanced nearly 3 percent intraday Thursday as it is going to consider buyback of its shares.
"The company's board meeting will be held on March 20, to consider, a proposal for buyback of the equity shares," company said in BSE filing.
"The trading window for trading in the securities of the company, shall remain closed up to the close of business on March 22, 2017 for designated persons," it added.
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.
Macquarie says HCL Technologies is its top pick in the large cap Indian IT services space as the company has been striking a good balance between payout and merger & acquisition investment.
On buyback, the brokerage house says without shareholder nod, company can buy back shares up to 10 percent of shareholder equity and with shareholder nod, it can buy back up to 25 percent of shareholder equity.
At 10:58 hrs HCL Technologies was quoting at Rs 855, up Rs 15.10, or 1.80 percent on the BSE.Posted by Rakesh Patil