India’s fourth largest software services firm HCL Technologies today said it will buy back shares at Rs 1,000 apiece, a 17 per cent premium over current trading price.

The company is proposing an offer for buyback of equity shares for cash at a price of Rs 1,000 per equity shares on a proportionate basis through tender offer process, HCL Technologies said in a regulatory filing.

The buyback size is Rs 3,500 crore, representing 16.39 per cent and 13.62 per cent of the aggregate of the fully paid-up equity share capital and free reserves as per the standalone and consolidated audited accounts of the company for the financial year ended March 31, 2016, it added.

The buyback offer price is about 17 per cent higher than the current trading price of the stock at Rs 852.35 per share.

HCL said a Letter of Offer will be sent to equity shareholders of the company as on record date of May 25.

Opening and closing dates of the buyback programme, which received shareholder approval last month, has not yet been announced.\

The Indian IT companies have been under pressure to return excess cash on their books to shareholders through generous dividends and buybacks.

Earlier this month, Tata Consultancy Services (TCS) announced its Rs 16,000-crore mega buyback offer. It is currently under way.

TCS rival, Infosys has also announced its capital allocation policy to return up to Rs 13,000 crore this financial year through dividend and/or buyback.

Earlier this year, Cognizant announced a $3.4-billion share buyback, bowing to pressure from activist investor Elliott Management Corp

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