Tech Mahindra extends gains post share buyback announcement

NEW DELHI: Shares of Tech MahindraNSE 0.65 % climbed over 1 per cent, a day after its board approved a buyback of up to 20.6 million shares.

The board of Tech Mahindra has approved a buyback of up to 20.6 million shares (2.06 crore) worth Rs 1,956 crore at Rs 950 per share. The record date of the repurchase, which will represent up to 2.10 per cent of the total paid-up equity capital of the company, is March 6.

As per brokerage Reliance CapitalNSE 1.43 %, the first ever share buyback of Tech Mahindra signals positive intent of the company with regards to its capital allocation policy. The buy-back also provides confidence in management’s view of underlying business strength and will boost sentiment.