Mid-sized IT firm Mindtree today said it has fixed July 11 as the record date for its Rs 270 crore share buyback.
"The Board has approved July 11, 2017 to be the record date for determining the entitlement and the names of the equity shareholders to whom the Letter of Offer will be sent and will be eligible to participate in the buyback," Mindtree said in a regulatory filing.
Mindtree will buy back up to 43.2 lakh shares, comprising 2.5 per cent of the total paid up equity share capital at a price of up to Rs 625 per equity share.
The aggregate amount for the share buyback is pegged at Rs 270 crore.
Mindtree said some promoter entities have communicated their intention to participate in the proposed buyback.
The move comes at a time when Indian IT firms are opening up their coffers to return surplus cash on their books to shareholders.
Share buybacks typically improve earnings per share and return surplus cash to shareholders while also supporting share price during periods of sluggish market conditions.
TCS, which had a cash pile of over Rs 43,000 crore on its books, has recently completed a Rs 16,000 crore buyback programme.
TCS' rivals Infosys and Cognizant have also announced plans of returning up to Rs 13,000 crore and USD 3.4 billion, respectively through dividend and/or buyback.
Smaller peer, HCL Technologies has also approved a buyback of up to 3.50 crore shares worth Rs 3,500 crore. IT firm Wipro has also stated that it will consider buyback of equity shares around July this year.
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