NEW DELHI: Shares of HCL Technologies climbed 2 per cent in Thursday's trade ahead of the board meet on a share buyback proposal.
The stock rose 2.47 per cent to hit a high of Rs 1,019.70 on BSE. While it was earlier anticipated that the fourth-largest software services company would announce a Rs 3,500 crore share buyback, similar to the one announced last year, a report by ET suggested that the buyback announcement may touch Rs 5,000 crore. The company may set Rs 1,100-1,150 per share as the buyback price, two people familiar with the development told ET.
The promoters — Shiv Nadar and his family – are expected to participate in the buyback, said one person. Details of the plan are expected to be firmed up on July 12, when the board will discuss the proposal.
“The Rs 5,000-crore buyback will be at a premium of 17-20 per cent to the closing price last Monday, when it had announced the intent of buyback,” the person said. Last year, HCL Tech bought back shares for Rs 3,500 crore at Rs 1,000 apiece, a 17 per cent premium over the prevailing trading price at that time.
“As the buyback will be accepted on a prorate basis, the shareholding pattern of the company will not change,” the second person said.
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