“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,” MindTree 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.
MindTree is the 10th IT firm that announced share buyback 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 share buyback 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; MindTree 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|
|R Systems Intl.||14/09/2016||07/11/2016||21/11/2016||65||38.00|
|Buyback offer through Tender route|