eClerx Services gains as board approves share buyback

The stock surged 9% to Rs 1,775, also its 52-week high on the BSE in early morning trade.

eClerx Services has surged 9% to Rs 1,775, also its 52-week high on the BSE in early morning trade, after the board approved a proposal for buyback of equity shares of the company at a price not exceeding Rs 2,200 per share through tender offer.

“The buyback is for an aggregate amount not exceeding Rs 234 crore and being within 25% of the total paid-up equity capital and free reserves of the company as on March 31, 2016, at a price not exceeding Rs 2,200 per equity share from all existing shareholders of the company on the record date fixed for the said purpose, on a proportionate basis through tender offer”, eClerx Services said in a statement.

At maximum buyback price, the buyback translates into approximately 1.07 million equity shares of the company, representing about 2.62% of the total paid up equity share capital of the company, as on March 31, 2016, it added.

The board noted the intention of the promoters and promoter group of the company to participate in the proposed buyback.

At 09:23 am, the stock pared early morning gain and was up 3.5% at Rs 1,690, as compared to 0.62% rise in the S&P BSE Sensex. A combined 79,499 shares already changed hands on the counter so far as against an average sub 50,000 shares that were traded daily in past two weeks on the BSE and NSE.