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Majesco hits new high, trades above proposed buyback price of Rs 845

In the past three months, the stock has zoomed 141 per cent as compared to a 10 per cent gain in the Sensex.

Topics
Majesco | Buzzing stocks | Buyback

SI Reporter  |  Mumbai 

HNI, high net worth individuals, rich, billionaires, millionaires, investors, investment, stocks, valuations, brokers, earnings
The buyback is proposed to be undertaken from the shareholders of the company on a proportionate basis through the tender offer route.

Shares of hit a fresh record high of Rs 889, up 5 per cent on the BSE in intra-day trade on Friday. The shares were trading above the proposed price of Rs 845 per share. The stock surpassed its previous high of Rs 884.85, touched on Wednesday, October 7.

At 02:34 pm, the stock was trading 4 per cent higher at Rs 880, against a 0.75 per cent rise in the S&P BSE Sensex. A combined around 600,000 equity shares had changed hands on the counter on the NSE and BSE. In the past three months, the stock has zoomed 141 per cent as compared to a 10 per cent gain in the benchmark index.

“The board of directors of on Thursday approved the proposal to up to 7.47 million equity shares, representing 25 per cent of the total paid-up equity capital of the company, as on September 30, 2020, at a price of Rs 845 a share, for an amount not exceeding Rs 631.26 crore,” said in a regulatory filing.

The is proposed to be undertaken from the shareholders of the company on a proportionate basis through the tender offer route, the company said in a notice to the stock exchanges.

Majesco said the buyback of shares is subject to the shareholder and SEBI approval and is expected to be completed by December 2020. "The balance cash amount intended to be distributed through dividend on reduced capital post buyback, subject to receipt of requisite corporate and statutory approvals, if any; dividend distribution expected by end December 2020/early January 2021," the company said.

Majesco on July 20, 2020, approved the sale of the company’s entire stake/ investment in the US subsidiary pursuant to the merger between the Majesco (US Subsidiary) and Magic Merger Sub, Inc., a Delaware corporation and a wholly-owned subsidiary of Magic Intermediate, LLC, a Delaware limited liability company.

In the Merger, all of the outstanding common stock of the US subsidiary has been extinguished and eligible shareholders (including the Company) became entitled to receive a cash amount of US$ 16 per share as per the revised offer. Accordingly, the company received $513.78 million equivalent to Rs 3,778 crore.

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First Published: Fri, October 09 2020. 14:37 IST
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