HCL Technologies announces Rs 4,000 crore buyback at Rs 1,100 per share

HCL-Technologies

HCL Technologies Thursday said it would buyback fully paid up equity shares of the company, amounting to Rs 4,000 crore at Rs 1,100 per share.

The buyback is for up to 3.63 crore fully paid up equity shares representing 2.61 percent of the total shares of the company.

The buyback is at a premium of 9.4 percent to HCL Technologies' closing price on Thursday.

India's fourth-largest IT company on July 9 said it would consider a buyback, nearly a month after larger rival TCS announced a buyback of Rs 16,000 crore.

Analysts were largely expecting HCL's buyback to be nearly equal to the Rs 3,500 crore it announced last year. That time, at Rs 1,000 per share, the buyback was at a premium of 17 percent to HCL's stock price.

Infosys had also announced a buyback worth Rs 13,000 crore in November last year.

The market will also be keen to know if HCL's promoters- Shiv Nadar and his family- will participate in the buyback. TCS had earlier said its promoters will participate in the latest buyback, while Infosys also declared last year that Sudha Gopalakrishnan (wife of co-founder S Gopalakrishnan) and Rohan Murty (son of co-founder NR Narayana Murthy) participated in the buyback.

The stock of HCL Technologies closed at Rs 1,005.30 on the Bombay Stock exchange on Thursday.