Speaking on its first buyback, Manoj Bhat, CFO of Tech Mahindra, said the company will adopt a dividend plus buyback strategy
The board of Tech Mahindra has approved a buyback of up to 2.05 crore shares worth Rs 1,956 crore at Rs 950 per share. The record date for the same is March 6, the company said in a release to exchanges.
Speaking on its first buyback, Manoj Bhat, CFO of Tech Mahindra, told CNBC-TV18 that the company will adopt a dividend plus buyback strategy. " "We will conduct buybacks on an annual basis as done by our peers in the industry. It is tax efficient and we do not want excess cash with the company," he said, adding that the IT major will still hold on to some cash for future acquisitions, as "this is a core feature of our growth strategy."
Bhat did not clarify whether promoters will participate in this process.
Cash-rich IT firms have been giving up excess cash to shareholders through dividend and share issues. Last month, Infosys announced a Rs 8,260 crore buyback and Persistent Systems’ board consented to a Rs 225 crore buyback plan.
The board met this morning and the buy back was announced. Rewarding investors is always a key goal... https://t.co/6TkuR9OHD6
— anand mahindra (@anandmahindra) February 21, 2019