Tuesday, 10 July 2018

HCL Technologies gains 4% as board mulls share buyback proposal

People walk in front of the HCL Technologies Ltd office at Noida, on the outskirts of New Delhi

HCL Technologies was up 4% to Rs 1,000 on the BSE in early morning trade after the company said on Monday after market hours that it will consider share buy-back on July 12. "The Board of Directors of the Company is scheduled to be held on Thursday, July 12, 2018, to consider a proposal for buy-back of equity shares of the company," HCL Technologies said in a BSE filing. 

The announcement comes within a month of Tata Consultancy Services (TCS), the country's largest software exporter, declaring an Rs 160 billion share buy-back programme at Rs 2,100 a share. HCL Technologies had last year offered buy-back of shares at Rs 1,000 apiece, a 17% premium over its prevailing trading price at that time. Thus far in the calendar year 2018, HCL Technologies (up 12%) has underperformed the TCS (up 39%) and Infosys (up 25%). On comparison, the S&P BSE Sensex was up 6% during the period.

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