eClerx Services hits record high after board approves buyback

eClerx Services rose 3.94% to Rs 1,697.20 at 9:23 IST on BSE after the company said its board approved buyback of equity shares for an aggregate amount not exceeding Rs 234 crore.

The announcement was made after market hours yesterday, 29 August 2016.

Meanwhile, the BSE Sensex was up 164.10 points, or 0.59%, to 28,066.76.

On BSE, so far 15,000 shares were traded in the counter, compared with average daily volume of 9,886 shares in the past one quarter. The stock hit a high of Rs 1,775 so far during the day, which is also a record high for the counter. The stock hit a low of Rs 1,680.10 so far during the day. The stock hit a 52-week low of Rs 1,170 on 29 September 2015. The stock had outperformed the market over the past 30 days till 29 August 2016, rising 5.23% compared with 0.53% slide in the Sensex. The scrip had also outperformed the market in past one quarter, rising 15.36% as against Sensex's 4.63% rise.

The mid-cap company has equity capital of Rs 40.85 crore. Face value per share is Rs 10.

eClerx Services' board of directors at its meeting held yesterday, 29 August 2016, approved a proposal for buyback of equity shares of the company for an aggregate amount not exceeding Rs 234 crore at a price not exceeding Rs 2,200 per share. The company will buy back shares on proportionate basis from existing shareholders through the tender offer route. At maximum buyback price, the buyback translates into approximately 10.68 lakh equity shares of the company, representing about 2.62% of the total paid up equity share capital of the company as on 31 March 2016. The promoters and promoter group of the company intend to participate in the proposed buyback.

On a consolidated basis, net profit of eClerx Services rose 27.25% to Rs 95.92 crore on 14.09% rise in net sales to Rs 340.33 crore in Q1 June 2016 over Q1 June 2015. The company declared its Q1 June 2016 results yesterday, 29 August 2016.

eClerx Services is a leading knowledge process outsourcing (KPO) company providing middle/back office operations support to over 30 Fortune 500 companies. Its five delivery centers across India support a diverse global client base, including the world's leading financial services, broadband, cable & telecom, ecommerce & retail, high tech, industrial manufacturing & distribution, software, media & entertainment and travel companies.

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