NIIT Tech gains 3%, trades near record high as board approves share buyback

The board of directors of the company at their meeting held on December 23, approved buy-back of up to 1.96 million equity shares at a price of up to Rs 1,725 per share via tender offer.

Shares of NIIT Technologies bounced back 4 per cent from early morning lows, and edged 3 per cent higher to Rs  Rs 1,626, on the BSE on Tuesday after its board approved share buyback at price of Rs 1,725 per share via tender offer.

The stock of the IT consulting & software firm, which touched an intra-day low of Rs 1,560, was trading close to its record high level of Rs 1,642, touched on December 17, 2019. In the past six trading days, the stock has rallied 10 per cent, after the company, on December 16, announced that its board will meet on December 23 to consider share buyback proposal.

“The board of directors of the company at their meeting held on December 23, approved buy-back of up to 1.96 million equity shares at a price of up to Rs 1,725 per share aggregating up to Rs 337 crore,” NIIT Technologies said in a regulatory filing after market hours.

The number of securities proposed to be bought back represents 3.1 per cent of the existing paid up equity share capital of the company. Hulst B.V., promoter of the Company has intent to participate in the buyback, it added.

At 09:56 am, NIIT Technologies was trading 2.5 per cent higher at Rs 1,617 on the BSE. In comparison, the S&P BSE Sensex was up 0.02 per cent at 41,649 points. The counter has seen huge trading volumes with a combined 1.29 million equity shares changing hands on the NSE and BSE so far.