HCL Tech's Rs 40-bn buyback starts today; should you tender your shares?

Analysts say investors can easily give this one a miss

The buyback offer of India’s third-largest IT firm, HCL Technologies (HCL Tech), opens on Tuesday.

The Noida-based company announced a buyback of up to 2.61 per cent at Rs 1,100 per equity share for an amount of up to Rs 40 billion. The offer closes on October 3.

Most analysts recommend investors give the buyback a miss. The company, they say, remains on a firm fundamental footing and the rupee’s slide against the dollar should aid financial performance. That apart, the stock trades at an inexpensive valuation as compared to peers and the current market price (CMP), too, does not