The IT consulting & software company's stock was trading higher for the fourth straight day. It has rallied 17 per cent during this period. The stock turned ex-date for share buyback on March 11, 2020.
According to the update provided to the stock exchanges, NIIT Technologies said the buyback offer will open on May 29 and close on June 11.
The company, in December last year, said its board has approved a proposal to buy back up to 1.95 million fully paid-up equity shares of a face value of Rs 10 each at a price of up to Rs 1,725. The buyback proposal, through the tender offer route, aggregated up to Rs 337.46 crore.
"This is to now inform you that pursuant to the Sebi circular...dated May 14, 2020, where certain relaxations were granted relating to procedural matters for takeovers and buybacks, the company has completed the dispatch of the letter of offer to the eligible shareholders holding shares as on record date (March 12, 2020)," it said.
Earlier this month, NIIT Tech's board also approved the change of name of the Company from ‘NIIT Technologies’ to ‘Coforge’, subject to shareholders’ approval and other necessary approvals, if any.
With today’s rally, the stock of NIIT Technologies has more-than-doubled from its 52-week low of Rs 739 touched on March 24, 2020.
Management expects single-digit decline in June 2020 quarter before recovery in the September 2020 quarter, citing visibility in its order book, notwithstanding the challenges on the travel/airlines segment. It expects to limit the YoY damage in EBITDA margins to <80bps in FY21, supported by tight cost-control measures.
“Consistent performance under the new leadership through FY18-20 has driven NIIT Technologies’ relative valuation premium to peers. We cut FY21/22E EPS by 8/2.3 per cent to Rs 68/86.5 on lower margin assumptions (as we incorporate recently unveiled RSU plan) and lower share count (assuming buyback to be completed by Q1FY21-end),” analysts at Emkay Global Financial Services said in results update.
At 12:00 pm, the stock was trading 7.5 per cent at Rs 1,550 on the BSE, against 1.1 per cent decline in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 1.65 million shares changing hands on the NSE and BSE so far.