Tata Consultancy Services has approved a share buyback worth Rs 16,000 crore following a meeting of its board on Monday. The company will repurchase 5.61 crore shares at Rs 2,850 a unit, representing 24.47% of its consolidated net worth, The Financial Express reported. The board also appointed Tata Sons chairman-designate N Chandrasekaran the company’s chairperson and V Ramakrishnan its chief financial officer.

In a filing, TCS said the buyback – the biggest ever in India – would be “made from shareholders of the company on a proportionate basis under the tender offer route using the stock exchange mechanism”, The Hindu reported. Shareholding patterns as of February 17 show that the Tata group owns 73.71% in TCS. As of December 31, 2016, the company also reported cash and other holdings worth Rs 38,381 crore.

Analysts also approved the buyback plan, and said the company needed to consider such moves more frequently. Vice President for Information Technology Research at Angel Broking SK Nangra said the share repurchase was a “good indication of the under-valuation of the stock in the markets”. Credit Suisse IT Analyst Anantha Narayan said a one-off buyback would not help the company much, Business Standard reported. “A consistent payout policy can be used to value the stock better on cash flows,” Narayan said. TCS paid a dividend of Rs 8,700 core for the 2016 Financial Year.