Mumbai, May 24: HCL Technologies, the country's fourth-largest software services company, today said it would buy back shares at Rs 1,000 apiece. The offer marks a premium of nearly 17 per cent over the current market price.

"The company is proposing an offer for buyback of equity shares for cash at a price of Rs 1,000 per equity shares on a proportionate basis through tender offer process," HCL Technologies said in a regulatory filing.

The buyback size is Rs 3,500 crore, representing 16.39 per cent and 13.62 per cent of the aggregate of the fully paid-up equity share capital and free reserves, according to the standalone and consolidated audited accounts for the financial year ended March 31, 2016, the company said.

On the BSE, the HCL Technologies scrip today finished lower by 1.16 per cent at Rs 855.

HCL said the record date for the buyback offer to shareholders will be May 25.

The opening and closing dates of the buyback programme, which received shareholders' approval last month, has not yet been announced.

Indian IT companies have been under pressure to return the excess cash on their books to shareholders through generous dividends and buybacks.

Earlier this month, Tata Consultancy Services (TCS), the country's largest software services company, announced a Rs 16,000-crore mega buyback offer. It is currently underway.

Infosys, the second-largest IT services company, also announced its capital allocation policy to return up to Rs 13,000 crore this financial year through dividends and/or buyback.

Earlier, the Bangalore-based company used to pay dividends of up to 50 per cent of post-tax profits of the financial year.

Infosys has now said from the current fiscal, it will pay up to 70 per cent of the free cash flow (net cash minus capital expenditure) by way of dividend or share buyback to be decided by the board.

Cognizant, too, has announced a $3.4-billion share buyback following pressure from activist investor Elliott Management Corp.