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Shares of software services exporter HCL Technologies dropped the most in nearly 7 weeks.
The stock fell as much as 2.4 per cent to Rs 982, marking its biggest intraday percentage loss since May 28. The stock was on track to snap a 6-day winning streak.
The Noida-based IT major has approved buyback of equity shares worth Rs 4,000 crore at Rs 1,100 per share.
“The company has approved the buy-back of 3.64 crore paid up equity shares of face value of Rs 2 each, representing 2.61 per cent of the fully paid-up equity shares of the company outstanding as on March 31, 2018 and as of now,” the company had said in its BSE filing on Thursday.
CLSA says that the buyback price is at a 14 per cent premium to its price pre-announcement and is a tad lower than the premiums in recent buybacks in the sector.
Assuming a yield on cash of about 7 per cent, Morgan Stanley says it expects the buyback to be largely neutral to FY19 EPS.
Out of the 46 analysts covering HCLT, 30 have a “buy” or higher rating, 11 “hold” and the remaining 5 “sell”; their median price target is Rs 1,052. HCL Technologies stock had risen nearly 13 per cent this year as of last close.
(With inputs from Reuters)
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