One of the top MNC named HCL approves the decision of buyback of shares worth Rs 4000 crore. The choice is pending with the board of directors from last some time. However, in the recent news, they finally decided to buy back the shares.

 

 

The primary reason behind the decision of buyback shares of worth Rs 4000 crore is, to attract the potential investors who are planning to invest in HCL in the near future. Along with this motive they also want present investors to buy some more as they better know the financial position of the company.

Overall the decision of the 4000 crores of the buyback is such a new deal for both present investors as well as for potential investors.

The board of HCL Company decided to repurchase the shares of worth Rs 3.6 crores. If we consider this regarding paid-up capital, HCL agreed to repurchase 2.6% of the total paid-up equity capital.
HCL Technologies decides to buyback the share at face value of Rs 1100 per share. The HCL board discloses the face value of the share in an exchange filing.

The decision of buyback by HCL includes the massive amount of sum. Total of 4000 crores which is approved by the HCL for the buyback is the, 14.83% of the total paid-up share capital of the company.
The total of 4000 crores of the buyback is the 11.59% of the total free reserves.

 

The financial position of HCL

According to the recent Filing of the HCL technologies, it was found that the company has the right amount of cash and cash equivalents that are Rs 6375 crores. The data provided here is recent which is picked up from the filing of 31 March 2018.

In 2017 also HCL approves the massive amount of buyback. In 2017 HCL buyback the shares of worth Rs 3500 crore. The premium on per share is fixed at 17%. This year again the company approves the buyback of an enormous amount. Now the only thing is to be a focus on is how it may affect either company positive or negative.

 

 

According to the reports of the Stock Market, share price of HCL increases by 13% in 2018.