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    HomeNewsBusinessCompaniesAfter TCS, Mindtree mulls share buyback

    After TCS, Mindtree mulls share buyback

    Mindtree is exploring options for buyback of shares and a decision will be taken in the next three to six months.

    March 08, 2017 / 16:36 IST
       
       
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      After Tata Consultancy Services, IT peer Mindtree is exploring options for buyback of shares and a decision will be taken in the next three to six months, according to a report in The Economic Times.

      Mindtree’s board has set up a committee to evaluate measures, including buyback, to boost shareholder value, said CEO Rostow Ravanan.

      Mindtree is the latest addition to the roster of IT companies that are considering buybacks. Last month, Cognizant had announced a buyback worth USD 3.4 billion. Even TCS followed suit with a Rs 16,000 crore buyback of up to 5.6 crore equity shares.

      The buyback plans come amid rising concerns that IT companies are struggling to put excess cash to investment use in a growth-challenged environment.

      There are, however, challenges to Mindtree’s potential buyback from two merger applications which are pending in court. The report said that the merger applications for the company’s acquisitions of Bluefin and Magnet 360 are still pending in court.

      You can't do a buyback when a merger application is under discussion, Ravanan said, adding that Mindtree is “evaluating both the benefits and disadvantages of it”.
      first published: Mar 8, 2017 02:22 pm

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