Shares of HCL Technologies Ltd rose as much as 3.5 per cent to Rs 995 as the company had said on Monday that it will consider share buyback on July 12.

“A meeting of the board of directors of the company is scheduled to be held on Thursday, July 12, 2018, to consider a proposal for buyback of equity shares of the company,” HCL Technologies had said in a BSE filing on Monday.

The announcement comes within a month of TCS, the country’s largest software exporter, declaring a Rs 16,000 crore share buyback programme. It had offered to buy back shares at a premium of more than 15 per cent at Rs 2,100 a share.

Details of HCL Technologies share buyback are expected to be firmed up on July 12 when its board will discuss the proposal. It had, last year, offered buyback of shares at Rs 1,000 apiece, a 17 per cent premium over its prevailing trading price at that time.

IDBI Capital says: “Expect HCLT to announce a buyback quantum similar to its buyback last year of around Rs 3500 crore.’’

Buyback of Rs 3,500 crore would utilise about 48 per cent of surplus cash as of end-FY18 and would be about 9.5 per cent of its net worth which would enable it to do buyback with the approval of its board, IDBI Capital adds.

HCL Technologies stock had gained 10 per cent this year as of last close.

(With inputs from Reuters)

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