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Last Updated : Feb 22, 2017 05:21 PM IST | Source: Moneycontrol.com

EXCLUSIVE: After TCS, HCL Tech could eye share buyback

An official familiar with the development told Moneycontrol the company was open to the idea of a share buyback and was considering it.


Dhirendra Tripathi
Moneycontrol

After Tata Consultancy Services' humongous Rs 16,000-crore share buyback, it could now be the turn of its only large rival from the north -- the Noida-headquartered HCL Technologies -- to undertake a similar exercise.

An official familiar with the development told Moneycontrol the company was open to the idea of a share buyback and was considering it.

"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," the official said.

HCL Technologies 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.

"Of course, it won't be the size of TCS buyback," he further said.

A company spokesperson termed the news as market speculation.

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.

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First Published on Feb 22, 2017 09:13 am
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