Mumbai: The board of IT services firm HCL Technologies Ltd on Thursday approved a share buyback plan worth 4,000 crore, the firm said in a stock exchange filing.

On 9 July, the company informed the exchanges that the board would consider a share buyback plan in its meeting on 12 July.

The company will buy back the shares at 1,100 per share.

“The board of directors of the company, in its meeting held today, has approved the buy-back of up to 3.63 crore (36.3 million) fully paid-up equity shares of the company of a face value of 2, each, (representing 2.61% of the fully paid-up equity shares of the firm) at a price of 1,100 per equity share payable in cash for an aggregate amount not exceeding 4,000 crore," the filing said.

The buyback is at a premium of 9.4% to the closing price of the stock on Thursday. Shares of HCL Technologies closed the day at 1,005.3 per share on BSE, up by 1.03%, while the benchmark Sensex closed at 36,548.41 points, up by 0.78%.

Public shareholders hold a 39.83% stake in the company, with retail investors holding around 2.45% stake, according to the company.

The HCL buyback announcement follows the mega buyback by India’s most valued IT services company Tata Consultancy Services Ltd (TCS), which last month said that its board had approved a share buyback worth 16,000 crore at a premium of more than 17% to the previous close.

At its board meeting on 15 June, TCS said it will buy back up to 76.19 million shares, aggregating up to 1.99% of the paid-up equity capital, via a tender at 2,100 per share.

TCS had announced a 16,000 crore share buyback last year as well, which was subscribed over 221%.

Last year, also witnessed other major IT buybacks, with Infosys Ltd and Wipro Ltd spending large sums to acquire their shares from the public.

Last November, India’s second largest IT company Infosys had bought back 13,000 crore worth of shares at 1,150 apiece.

In September, Wipro Ltd had bought back its shares worth 11,000 crore under its buyback programme.