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Should you participate in Tech Mahindra buyback? Here's what experts advise

The company plans to buyback 20,585,000 shares, which implies 2.1 per cent of the total shares outstanding.

Buybacks draw firms as taxes squeeze dividends

Last month, IT services firm Tech Mahindra announced its first-ever share buyback worth Rs 1,956 crore at a price of Rs 950 per share, which is over 15 per cent premium to the current market price (as of Wednesday's close).  The company plans to buyback 20,585,000 shares, which implies 2.1 per cent of the total shares outstanding. The buyback size is 9.2 per cent of the company's net worth and nearly 29 per cent of cash and investments as of third quarter of financial year 2018-19 (3QFY19)-end. SHOULD YOU TENDER YOUR SHARES? Investors with a long-term ...