eClerx Services slips 7% on turning ex-date for buyback via tender offer

Shares of eCierx Services slipped 7 per cent to Rs 1,273 on the BSE in Monday’s firm intra-day market. The company has proposed to buy back equity shares at a price of Rs 1,750 apiece via tender offer route.

The stock of the business process outsourcing (BPO)/ knowledge process outsourcing (KPO) company had hit a 52-week low of Rs 1,223.95 on June 17. At 02:12 PM; eClerx Services was trading 4 per cent lower at Rs 1,313.95 as compared to a 1.2 per cent rise in the S&P BSE Sensex.

On December 15, the buyback committee of the board of directors approved Tuesday, December 27, 2022 as the ‘Record Date’ for the share buyback.

The record date will determine the shareholders who would be eligible to participate in the buyback; the shareholders to whom the letter of offer and tender offer form will be delivered in relation to the buyback; and the entitlement of equity shareholders in the buyback.

With the buy back price of Rs 1,750 a share and the buyback size of upto Rs 300 crore, the total number of shares to be bought back in the buyback shall be upto 1.71 million equity shares representing 3.38 per cent of the total shareholding.

The buyback will help the company return surplus cash to its shareholders holding equity shares broadly in proportion to their shareholding, thereby, enhancing the overall return to the shareholders.

The buyback may help in improving return on equity due to reduction in the equity base, thereby leading to long term increase in shareholder value and will help in achieving an optimal capital structure, the company said.