HCL Technologies gains on share buyback plan

The stock was up 3% to Rs 864 in intra-day trade, trading close to its 52-week high on BSE

HCL Technologies gained 3% to Rs 864 in early morning deals, trading close to its 52-week high on BSE, after the company said that its board of directors will meet on Monday, March 20, 2017 to consider a share buyback proposal.

"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 shares of the company," the IT major informed the BSE in a regulatory filing.

As on December 31, 2016, promoters and promoter group hold 60.34% share in the company, while public shareholding is at 39.66%, the shareholding pattern data suggests.

HCL Technologies is the ninth IT Company which announced share buyback proposal thus in the financial year 2016-17 (FY17). Earlier, Tata Consultancy Services (TCS), Mphasis, Wipro and Hexaware Technologies had approved share buyback.

Most of the IT stocks had underperformed the market in FY17, with S&P BSE IT index down 8.8% as compared to 16% gain in the S&P BSE Sensex till Wednesday.

At 9:30 am; HCL Technologies was trading 1.8% higher at Rs 855 against 0.71% rise in the benchmark index. The stock hit 52-week high of Rs 869 on August 8, 2016 in intra-day trade.