New Delhi: HCL Technologies said on Monday that it will consider share buy-back on July 12 - roughly a year after it announced its first buyback.
HCL will be the second large IT services firm after sector leader Tata Consultancy Services (TCS) to look at a buyback and return cash to shareholders.
Last month, TCS announced Rs 16,000 crore buyback, the second consecutive in two years.
"The Board of Directors of the Company is scheduled to be held on Thursday, July 12, 2018, to consider a proposal for buy-back of equity shares of the company," HCL Technologies said in a BSE filing.
The company is slated to also announce its financial results later this month.
In May 2017, India's fourth largest software services firm HCL Technologies announced that it will buyback shares at Rs 1,000 apiece, a 17 per cent premium over current trading price with a buyback size of Rs 3,500 crore, representing 16.39% and 13.62% of the aggregate of the fully paid-up equity share capital and free reserves.
HCL Technologies stock closed at Rs 961.25, up 1.68 per cent, on BSE on Monday.
Indian IT companies have been raising the amount of money they return to shareholders, following a letter sent by activist investor Elliott Management to Cognizant.
Infosys and Wipro announced buybacks of Rs 13,000 crore and Rs 11,000 crore, respectively, last year.
TCS had bought back about Rs 16,000 crore of shares last year as well, as the company began to raise the amount it returns to shareholders.
TCS plans to return about 80-100 per cent of the free cash flow it generates in a year.