New Delhi: Mid-sized IT firm Mindtree on Wednesday said its Board has approved a share buyback plan of Rs270 crore.

Mindtree will buy back up to 43.2 lakh shares, comprising 2.5% of the total paid up equity share capital at a price of up to Rs625 per equity share, the company said in a regulatory filing.

The aggregate amount for the share buyback is pegged at Rs270 crore, it added.

“The buyback would be carried out via the tender offer route...," the company said. 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 Rs43,000 crore on its books, has recently completed a Rs16,000 crore buyback programme.

TCS’ rivals Infosys and Cognizant have also announced plans of returning up to Rs13,000 crore and $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 Rs3,500 crore. IT firm Wipro has also stated that it will consider buyback of equity shares around July this year.