Experts flag HCL’s $200-million debt plan

BENGALURU: HCL Technologies’ plan to raise $200 million to fund its acquisitions of some intellectual property (IP) assets of IBM is a concern, say analysts who have seen Indian IT servicesNSE 0.61 % firms hoard cash that they typically return to shareholders.

In December, HCL Tech had said it would buy select software products from IBM, including its email client Lotus notes, for $1.8 billion.

The company plans to take $200 million debt to part-fund the deal. It said there would be an estimated one-time cost of $25 million towards foreign exchange hedging payables.