Tech Mahindra share price rose in trade today after the IT firm announced a Rs 1,956-crore buyback of its shares at Rs 950 apiece, a 14.59 per cent premium over current trading price. Tech Mahindra share price rose 3.49% to 840.10 level compared to the previous close of 811.75 on the BSE. Tech Mahindra share opened at 814 level on BSE today. Turnover for Tech Mahindra share rose to Rs 40.45 crore with 4.89 lakh shares changing hands on the BSE.
Tech Mahindra share price was trading above its 50-day and 200 day moving average of 740.95 and 719.48 levels, respectively.
Tech Mahindra share price has risen 39.47% during the last one year and gained 14.97% since the beginning of his year.
The share buyback proposal has been approved by the company's board.
Pune-based Tech Mahindra is proposing to buy back up to 2.05 crore (2,05,85,000) equity shares at a price of Rs 950 per equity share for an aggregate amount not exceeding Rs 1,956 crore.
March 6, 2019, is the record date for the purpose of ascertaining the eligibility of shareholders to participate in the buyback.
The buyback offer price is 14.59 per cent higher than the current trading price of the stock at Rs 829 per share. Opening and closing dates of the buyback programme has not yet been announced.
Cash-laden Indian IT firms have been returning surplus cash on their books to shareholders by way of dividends and buybacks.
Earlier this year, 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.
Edited by Aseem Thapliyal