eClerx Services Limited approves share buyback in Board meeting

The board of directors of eClerx Services Ltd at its meeting held on July 6, 2020, approved the buyback of the company's equity shares for an aggregate amount not exceeding Rs 109.5 crore. It is at a buyback price not exceeding Rs 550 per equity share (maximum buyback price) from the shareholders or beneficial owners of the company except promoters, members of Promoter Group and persons in control of the company i.e. eligible shareholders.

This price is excluding various transaction costs viz. brokerage, cost, fees, turnover charges, income tax, stamp duty, advisor fees, etc. This cost is not more than 10 per cent of the total paid-up equity share capital and free reserves of the company, which is in accordance with the provisions of Regulation 5(i) (b) of the Buyback Regulations.

Assuming the company buyback and the indicative maximum buyback shares, this buyback will result in promoter shareholding to increase 53.65 per cent post buyback as against 50.76 per cent currently.

The stock closed at 475.55, down by 0.16 per cent or Rs 0.75 per share. The intraday high is Rs 527.5 and intraday low is Rs 465.8.