eClerx Services Approves ₹385 Cr Buyback at 16% Premium

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Synopsis:

 eClerx Services Limited board greenlights a ₹385 crore buyback of 13.75 lakh equity shares at ₹2,800 each, marking its sixth buyback in eight years. Promoters, holding 53.61% equity, will participate. The move aims to enhance EPS and support shareholders amidst stock fluctuations.

eClerx Services News Today

eClerx Services Limited’s board approved a buyback of 13.75 lakh equity shares while releasing its fourth-quarter results. This marks the sixth buyback in the last eight years for the company.

Buyback Details

The buyback will utilise a sum not exceeding ₹385 crore. It accounts for 24.98% of the total paid-up equity share capital and 18.38% of free reserves. Promoters, holding 53.61% equity, will participate in the process. The buyback price is set at ₹2,800 per share, a premium of 16.24% over the Thursday closing price.

Method and Objective

The eClerx Services buyback will be executed via the 'tender offer' route. Its purpose includes increasing promoter holding, supporting share price, and enhancing EPS. Additionally, it safeguards against potential hostile takeovers and utilises excess cash for shareholder benefit.

15% of the buyback shares will be reserved for small shareholders. Based on the March quarter shareholding pattern, approximately 44,966 shareholders qualify, holding 32.79 lakh shares.

Historical Context & Stock Performance

In 2022, eClerx announced a ₹300 crore buyback at ₹1,750 per share and issued a bonus share for every two held. Before this, in 2021, it repurchased shares at ₹2,850 apiece in a ₹303 crore buyback.

Despite a 5.6% decline in 2024, the stock has surged nearly 80% in the last year and almost quadrupled in the past five years. Shares ended 4.7% higher on Thursday at ₹2,411, reflecting investor optimism.

Sources:

https://www.cnbctv18.com/market/eclerx-services-share-buyback-tender-offer-385-crore-premium-record-date-q4-results-stock-19413287.html

 

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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