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HCL Tech to consider share buyback

Press Trust of India  |  New Delhi 

The Board of will meet next week to consider stock buyback, joining the growing roster of IT companies that have opted for the route to make use of huge piles of lying idle with them.

The sector's leader and US-based had last month announced mega buyback offers to return surplus to shareholders.

"A meeting of the Board of Directors of the company will be held on Monday, March 20, 2017 to consider a proposal for buyback of the equity of the company," said in a filing to the

IT companies have been under increasing pressure from investors to utilise the huge pile on books either through share buyback or generous dividend.

had Rs 43,169 crore in cash reserves, while had liquid assets, including cash and cash equivalents and worth Rs 35,697 crore (about USD 5.25 billion) at the end of December 2016.

HCL Tech had USD 326 million or Rs 2,214.5 crore in cash and cash equivalents on its books in December, 2016.

Last month, had announced USD 3.4 billion share buy back, bowing to pressure from activist investor Elliott Management Corp.

followed suit with a Rs 16,000 crore buyback offer, largest in Indian corporate history.

too has been under pressure to make a similar offer. While it is yet to make any announcements, has sought shareholders approval to change the company's Articles of Association that includes a provision for buyback.

Share buybacks typically improve earnings per share and return surplus cash to shareholders while also supporting share price during periods of sluggish market condition.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, March 15 2017. 19:29 IST