NIIT Technologies surges 6% as board to mull share buyback plan

Shares of NIIT Technologies advanced 6 per cent to Rs 1,563 on the BSE on Tuesday after the company announced that its board will meet on December 23 to consider share buyback proposal. The stock of the IT consulting & services firm was trading close to its 52-week high level of Rs 1,638 touched on November 21, 2019.

In the past one-and-half years, big technology companies such as Infosys, Tata Consultancy Services (TCS), Wipro and HCL Technologies have preferred the buyback route to meet two purposes — rewarding shareholders, and utilising free cash available.

NIIT Technologies is a debt-free (no long term borrowings) company, with cash and cash equivalents increased from Rs 806 crore a year ago to Rs 976 crore as on March 31, 2019. The company’s net worth stood at Rs 2,072 crore at the end of financial year 2018-19.