The board of HCL Technologies on Thursday approved a share buyback of up to Rs 4,000 crore at a price of Rs 1,100 apiece.
The buyback will not exceed Rs 4,000 crore, which is 14.83 per cent and 11.59 per cent, of the fully paid-up equity share capital and free reserves (including securities premium account).
“The board of directors of the company have approved the buyback of up to 3,64 crore fully paid up equity shares of face value of Rs 2 each, representing 2.61 per cent of the fully paid-up equity shares of the company outstanding as on March 31, 2018,” the Noida-based company said in a regulatory filing.
The buyback is subject to the approval of the shareholders through special resolution through postal ballot and all other approvals as may be required. The repurchase programme is proposed to be made from the shareholders of the company on a proportionate basis, the HCL Tech said.
The announcement setting out the process, timelines and other requisite details will be provided on a later date by the company.
HCL Tech, with a market capitalisation of Rs 138,551 crore, aims to maximise the return of cash to shareholders. Rewarding shareholders with special dividend would have attracted dividend distribution tax, the person said. In a buyback, the shares are tendered through the stock exchange and attract securities transaction tax, which is negligible compared to dividend distribution tax.
Source: Economic Times