Majesco shares locked in 5% upper circuit for 16th straight session

The stock has rallied 113 per cent in the last 15 trading days

Shares of Majesco were locked in upper circuit for the 16th straight trading day, up 5 per cent at Rs 26.05 on the BSE on Friday in an otherwise weak market. The stock has rallied 113 per cent from the level of Rs 12.20 after it adjusted to interim dividend of Rs 974 per share.

Majesco had paid high dividend payout after the sale of US arm — which accounted for the bulk of its revenues and profits — to private equity firm Thoma Bravo last year. The company had also bought back 1.57 million equity shares at price of Rs 845 per share. The buyback was undertaken to return a part of surplus cash received by the Company, upon the sale of its shareholding in Majesco, USA to the shareholders, Majesco had said in a statement.

As regards to future plan, Majesco said as a first step distribution of balance cash of Rs 103 crore to the shareholder base of 28.577 million will be carried out as expeditiously as possible subject to board and regulatory approvals.

On monetisation of real estate, the management said this could take longer i.e. over a year and depending on real estate market conditions. Post monetisation of real estate, the company will decide the best method for distribution of sale proceeds to shareholders, it said.

Currently, the company has market capitalisation of Rs 74.58 crore, the BSE data shows. Till 12:34 pm, a combined less than 4,000 equity shares had changed hands and there were pending buy orders for 38.23 million equity shares on the NSE and BSE.

Meanwhile, the board of directors of Majesco is scheduled to meet on Monday, January 18, 2021 to consider audited financial results of the company for the quarter and nine months ended December 31, 2020.