eClerx Company Announces Share Buyback Plan

eClerx, the prominent provider of business process management solutions, has recently unveiled plans for a buyback of its equity shares. The company aims to repurchase up to 1,375,000 fully paid-up equity shares, each having a face value of Rs 10 (Rupees Ten only), amounting to a total expenditure not exceeding Rs 385 crores. This buyback excludes transaction costs such as brokerage fees, taxes, and advisory charges associated with the process.

Record Date and Buyback Timeline

The Board of Directors, in conjunction with the company’s shareholders, has set Thursday, July 4, 2024, as the record date for determining the eligibility of shareholders to participate in the buyback. On this date, the company will ascertain the entitlement of equity shareholders, distribute the Letter of Offer and Tender Offer Form, and finalize the list of eligible participants.

Following the declaration of the record date, eClerx has outlined a comprehensive schedule of activities for the buyback programme. The buyback will commence on Tuesday, July 9, 2024, and conclude on Monday, July 15, 2024. Shareholders interested in participating must submit their completed Tender Form and relevant documents to the Registrar to the Buyback by the closing date.

Financial and Strategic Implications

eClerx’s decision to repurchase shares at Rs 2,800 per equity share which is 17.87% above current closing price of Rs 2,373.45 reflects its confidence in enhancing shareholder value. This move is aligned with the company’s strategy to optimize capital allocation and utilize surplus cash effectively. The buyback price represents a premium over the prevailing market price, thereby providing an attractive opportunity for shareholders looking to tender their shares.

Conclusion

Shareholders of eClerx who are interested in participating in the buyback program should carefully review the announced schedule and ensure they submit the necessary paperwork by the deadline. With the record date set for July 4th, shareholders will soon know if they are eligible to participate in this share repurchase program.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.