eClerx Services announces share buyback

The Board of Directors held a meeting today in which they approved the proposal for buyback of approximately 16,37,500 fully paid-up equity shares of the company with a face value of Rs. 10 each for an aggregate amount not exceeding Rs. 262 crore.

This amount is not inclusive of expenses such as brokerage and applicable taxes such as securities transaction tax, goods and services tax, stamp duty, filing fees, advisor fees, public announcement expenses, printing and dispatch expenses and other incidental and related expenses etc. incurred or to be incurred for the buyback.

The shares will be bought back at a maximum price of Rs. 1,600 per share. The record date is yet to be announced. The share repurchase will take place on a proportionate basis through the tender offer route provided that 15 per cent of the number of equity shares which the company proposes to buyback or the number of equity shares entitled as per the shareholding of small shareholders as on the record date, whichever is higher, shall be reserved for the small shareholders as prescribed under the SEBI buyback regulations.

Furthermore, the board has noted the intention of the promoter and promoter group of the company to participate in the buyback.

On Thursday, the shares of eClerx Services Limited opened at Rs. 1,117.00, and hit a high and low of Rs. 1,174.00 and Rs. 1,095.55, respectively. The stock closed at Rs. 1,149.70, up 4.06 per cent.