New Delhi: IT firm Tech Mahindra on Thursday announced a Rs 1,956-crore buyback of its shares at Rs 950 apiece, a 14.59 per cent premium over current trading price.

The share buyback proposal has been approved by the company's board.

The firm is proposing to buy back up to 2.05 crore (2,05,85,000) equity shares at a price of Rs 950 per equity share for an aggregate amount not exceeding Rs 1,956 crore, Tech Mahindra said in a regulatory filing.

March 6, 2019, is the record date for the purpose of ascertaining the eligibility of shareholders to participate in the buyback, it added.

The buyback offer price is 14.59 per cent higher than the current trading price of the stock at Rs 829 per share.

Opening and closing dates of the buyback programme has not yet been announced.

Cash-laden Indian IT firms have been returning surplus cash on their books to shareholders by way of dividends and buybacks. Earlier this year, Infosys had announced a buyback offer of Rs 8,260 crore. Persistent Systems' board had also approved a buyback offer of up to Rs 225 crore in January this year.