I read that HCL Technologies announced a buyback, what’s your view on it?
The board of HCL technologies approved a Buy-back of up to 3,63,63,636 fully paid up equity shares of the Company of face value of Rs.2. This represents 2.61% of outstanding share capital of the company. The company will be buying back shares at a price of Rs.1100 per share.
Pre-buyback shareholding pattern
| Category of Shareholder | No. of Shares | % of the existing Equity Share Capital |
|---|---|---|
| Promoters and Promoter Group | 83,78,80,610 | 60.17% |
| Foreign Investors ( Foreign Portfolio Investors, Foreign Banks, Foreign Nationals, Non-Resident Indian and Overseas Corporate Bodies) | 37,38,66,523 | 26.85% |
| Indian Financial Institutions! Banks I Insurance Companies I Alternate Investment Funds | 5,67,64,157 | 4.08% |
| Mutual Funds | 7,67,90,019 | 5.51% |
| Bodies Corporate / Trusts / Clearing Members/ NBFCs | 1,30,20,348 | 0.94% |
| Resident Individuals and others | 3,40,85,047 | 2.45% |
| Total | 1,39,24,06,704 | 100% |
Year to date the stock has lagged the NIFTY IT index and all it major competitors but has performed better than Nifty 50. The stock is up 12% while the index is up 26% YTD.
How to apply for the buyback?
You will have to create a ticket here with the details of the share you wish to tender.
How do I know, how many shares the number of my shares entitled for a buyback?
This can be found on the tender form that will be sent to your registered email ID by the RTA (Registrar and Transfer agents). However, you can tender any number of shares you choose to. The approved shares will be debited from your demat and the equivalent amount will be credited to your bank account. The excess shares you had tendered will be credited back to your demat.
What is a tender form and how does it look like? Do I also have to send it to my broker?
A tender form basically shows you the number of shares you hold as on the record date and the number of shares you hold that are entitled in a buyback. In case of this issue you don’t have to send us your tender form. Here’s a screenshot of a tender form that shows the shares you hold and the shares entitled in a buyback
When is the record date?
The record date is yet to be announced and we’ll update it here when it is announced.
Why do companies buyback shares?
Explained here.
Record date is about 2 months away from now as the company needs to get shareholders approval through postal ballot.
Thanks. I read that the board has approved the buyback though.
what is the recent report on buyback?
31 August was record date and based on last years experience with hcl buyback ,it should around 15 September.