- December 24, 2021
- Posted by: Bastion team
- Category: World News
HCL Technologies promoters are looking to buy 45 lakh share block purchase which is going to be at a 5% premium to yesterday’s closing price via the open market today. HCL Technologies has been trading at a discount to all of its other largecap IT players. So it may give a bottom to the stock price in that sense and protect it from further downside. But would you venture to buy HCL Technologies as opposed to the other names?
Fundamentally, HCL Tech has been growing a bit faster than other larger IT companies and this is a reflection of the confidence of the promoters in the business of the company. Now why they have publicised it and are doing it via block deal only they could tell. It is very easy to buy 45 lakh shares via the open market also and that is something which I cannot understand. If it was for a very large stake, then we could have argued, but it is a stake in decimal places and so I am not sure why they are doing it this way.
But in any case, it reflects confidence of the promoters on the future of the company and it would create a base on the stock price as we approach the result season and subsequent reactions of the stock will depend more on how the…