Mumbai-based knowledge and business process outsourcing company, eClerx Services on Monday in a filing to Securities and Exchange Board of India (Sebi) said it has bought back 11.7 lakh shares for R 234 crore as a part of a share buyback offer which began on November 28.
In August this year, the company’s board had approved a proposal to buy back shares, subject to the approval of shareholders, for an aggregate amount not exceeding R234 crore at a price of not more than R2,000 per share through a tender offer.
The company said, post buyback, the promoters holding in the company increased to 50.44% from 50.25%, while holding of foreign investors increased to 49.56% from 29.93%.
On Friday, the share price of Eclerx Services rose 0.60 % and ended the session at R1,358 on BSE. A combined 7035 shares changed hands on the counters of BSE and NSE on Monday.
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The company has cash and equivalents of R544 crore as on March 31, 2016. According to Sebi rules, a company can buy back shares either from its existing shareholders on a proportionate basis through a tender offer, the open market or odd lot holders. In the case of a tender offer, the company has to deposit 25% of the consideration in the escrow account if the consideration does not exceed R100 crore.
Companies offer buybacks to enhance their value since the shares bought back are extinguished and the earnings per share (eps) gets a boost.