HCL Tech stock slips 2% after board approves buyback

The company has approved a share buyback of nearly 3.64cr at a price of Rs1,100.

Jul 13, 2018 05:07 IST India Infoline News Service

Stock Market Down, Sensex Down
Shares of HCL Tech fell 2% on the BSE in Friday’s trade. The company has approved a share buyback of nearly 3.64cr at a price of Rs1,100, the company informed the exchanges in a filing late on Thursday evening.

“The Board of Directors of the company, at a meeting held on Thursday, July 12, 2018, has approved the buyback of up to 3,63,63,636 fully paid-up equity shares of face value Rs2 each at a price of Rs1,100 per equity share payable in cash for an aggregate amount not exceeding Rs4,000cr, which is 14.83% and 11.59% of the fully paid-up equity share capital and free reserves as on March 31, 2018,” the company said in the statement.

This represents 2.61% of the fully paid-up equity shares of the company outstanding as on March 31, 2018. The buyback is proposed to be made from the shareholders of the Company on a proportionate basis through the 'tender offer' route as prescribed under SEBI.

“The buyback is subject to the approval of the shareholders by way of a special resolution through Postal Ballot and all other approvals as may be required,” the statement clarified.

The stock is currently trading at Rs982.65 down by Rs22.65 or 2.25% from its previous closing of Rs1,005.30 on the BSE.

The scrip opened at Rs1,004 and has touched a high and low of Rs1,004 and Rs977.60 respectively. So far 33,42,457 (NSE+BSE) shares were traded on the counter.

Related Story