NEW DELHI, Apr 20: IT company Nucleus Software Exports today said its board will meet on April 25 to consider the buyback of equity shares.
“… A meeting of the Board of Directors of the company will be held on April 25, 2017, to consider the proposal of buyback of fully paid up equity shares of the company, up to such amount of the aggregate of company’s paid up equity share capital and free reserves as the Board may decide,” the company said in a regulatory filing.
Share buyback typically improves earnings per share and is a mechanism to return surplus cash to shareholders besides supporting share price during periods of sluggish market condition.
Indian IT companies are under pressure to return excess cash on their books to shareholders through generous dividends and buybacks.
Earlier this week, shareholders of India’s largest software company TCS approved a Rs 16,000 crore buyback plan, the biggest in the Indian capital market.
Infosys too outlined its capital allocation policy recently to return up to Rs 13,000 crore this financial year through dividend and/or buyback, and while its smaller peer HCL Technologies has approved a buyback of up to 3.50 crore shares worth Rs 3,500 crore.
Earlier this year, bowing to pressure from activist investor Elliott Management Corp, IT company Cognizant announced a USD 3.4 billion share buyback. (PTI)
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