NEW DELHI: The board of IT major Tech Mahindra on Thursday approved a share buyback proposal of up to 2.06 crore shares at a price of Rs 950, not exceeding Rs 1,956 crore.
Tech Mahindra said that the offer comprises 2.10 per cent of the total paid-up equity capital of the company.
The technology company has set March 6 as the record date.Sameer Kalra, Target Investing, said "Tech Mahindra share buyback is positive for investors as it provides them cash back in a tax efficient manner and price of buyback is a big positive which is 15% premium over yesterday close."The offer size does not include any expenses incurred or to be incurred for the buyback such as filingfees payable to SEBI, advisors fees, transaction costs viz.
brokerage, applicable taxes such as securities, Tech Mahindra told BSE.Cash-laden Indian IT firms have been returning surplus cash on their books to shareholders by way of dividends and buybacks.
Infosys had announced a buyback offer of Rs 8,260 crore.
Persistent Systems board had also approved a buyback offer of up to Rs 225 crore in January this year.