India's major IT firm Tech Mahindra has approved its first ever share buyback plan to repurchase up to 2.05 crore shares at a price of Rs 950 per share, totalling to Rs 1,956 crore.
India’s major IT firm Tech Mahindra has approved its first ever share buyback plan to repurchase up to 2.05 crore shares. The firm has fixed the share buyback price at Rs 950, implying a premium of 16.9% from yesterday’s closing price of Rs 812.40 on NSE. Notably, the firm has fixed Wednesday, 6th March, 2019 as the record date for the purpose of ascertaining the eligibility of shareholders to participate in the Buyback.
“We will conduct buybacks on an annual basis as done by our peers in the industry. It is tax efficient and we do not want excess cash with the company,” ,Manoj Bhat, CFO of Tech Mahindra, told in an interview to CNBC-TV18 adding that the IT major will still hold on to some cash for future acquisitions, as in order to give a push to its growth. “The board met this morning and the buy back was announced. Rewarding investors is always a key goal,” Anand Mahindra, Chairman of Mahindra Group tweeted.
Tech Maindra MD and CEO CP Gurnani thanked the firm’s investors and said that it was time to reward all stakeholders. “Time to reward stakeholders who’ve placed trust in us.. Thank you
@tech_mahindra investors. This one is for you,” he said in a tweet. Tech Mahindra shares are trading 2% higher at Rs 829.80 on NSE. The Public Announcement setting out the process, timelines and other statutory details will be published on February 25, 2019 in accordance with the Buyback Regulations, the firm said in its statement to the exchanges.