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MindTree gains on share buyback plan

The board will meet on June 28, to consider a share buyback proposal.

SI Reporter  |  Mumbai 

Brokers trade at their computer terminals at a stock brokerage firm in Mumbai. Photo: Reuters

was up 3% to Rs 535 on the BSE in early morning trade after consulting & software services provider said that its board will meet on June 28, to consider a proposal.

“A meeting of the board of directors of the Company will be held on June 28, 2017 to inter-alia, consider the proposal to buyback the fully paid-up equity shares of the Company,” said in a regulatory filing.

Thus far in the calendar year 2017, the stock had underperformed the market and remained flat as compared to 17.5% rise in the benchmark S&P BSE Sensex till Thursday.

is the 10th firm that announced proposal in past one year. Earlier, Tata Consultancy Services (TCS), HCL Technologies, MphasiS, Sasken Technologies, Hexaware Technologies, R Systems International, eClerx Services and Infinite Computer Systems had announced proposal.

These companies said the buyback is a capital allocation decision taken with the objective of seeking a fairer valuation of the Company’s stock while improving the Company’s Return on Equity and increasing shareholder value in the longer term.

In addition to the distribution of some surplus cash to the members holding equity shares broadly in proportion to their shareholding, will enhance the overall return to members.

The buyback has made from the shareholders of the company on a proportionate basis under the tender offer route using the stock exchange mechanism.

At 09:35 am; was trading 1.8% higher at Rs 530 as compared to 0.06% decline in the Sensex. A combined 169,590 shares changed hands on the counter on BSE and NSE so far.

Company Date Offer Open Offer Close Buyback Price(Rs) LTP
Nucleus Soft. 25/04/2017 NA NA 350 337.15
HCL Tech 20/03/2017 12/06/2017 23/06/2017 1000 849.50
TCS 20/02/2017 18/05/2017 31/05/2017 2850 2409.80
MphasiS 31/01/2017 12/05/2017 25/05/2017 635 588.00
Sasken Technol. 28/10/2016 03/02/2017 16/02/2017 410 443.50
Hexaware Tech. 25/10/2016 02/02/2017 15/02/2017 240 250.85
R Systems Intl. 14/09/2016 07/11/2016 21/11/2016 65 38.00
eClerx Services 29/08/2016 28/11/2016 09/12/2016 2000 1308.80
Infinite Comp 24/08/2016 10/02/2017 23/02/2017 265 209.35
Buyback offer through Tender route      
Source: CapitalinePlus        

First Published: Fri, June 23 2017. 09:51 IST