eClerx Services soars 16% on board nod for share buyback

The stock hit 52-week high of Rs 1,590, up 16% on the BSE in noon deal, after the company announced that its board approved buyback of shares at price of Rs 2,000 per share through tender offer.

eClerx Services moved higher to its 52-week high of Rs 1,590, up 16% on the BSE in noon deal, after the company announced that its board approved buyback of shares at price of Rs 2,000 per share through tender offer.

“The board approved a proposal for buyback of equity shares of the company, for an aggregate amount not exceeding Rs 258 crore and being within 25% of the total paid-up equity capital and free reserves of the Company as on March 31, 2017, at a price not exceeding Rs 2,000  per equity share,” eClerx Services said in a statement.

The buyback will be from all existing shareholders of the company including promoters on the record date to be fixed for the said purpose, on a proportionate basis through "Tender Offer" route, it added.

At maximum buyback price, the company will buy back 1.29 million equity shares representing about 3.24% of the total paid up equity share capital of the Company, as on March 31, 2017.

As of December 15, 2017, the promoter & promoter group held 50.11% stake in eClerx Services.

At 01:32 PM; the stock was trading 15% higher at Rs 1,571 on the BSE, as compared to 0.53% rise in the S&P BSE Sensex. A combined 1.15 million shares changed hands on the counter against an average sub 100,000 shares were traded daily in past two weeks on the BSE and NSE.