Shares of software services provider eClerx Services rallied as much as 16 per cent to Rs 1,589.55 on Friday as the company has got the board approval for buyback of equity shares.
The board of directors today unanimously approved a proposal for buyback of equity shares, subject to the approval by shareholers, for an aggregate amount not exceeding Rs 258 crore, and being within 25 per cent of the total paid-up equity capital and free reserves of the company as on March 31, 2017. The buyback will take place at a price not exceeding Rs 2,000 per share.
According to the BSE filing, at maximum buyback price, the buyback translates into approximately 1,290,000 equity shares of the company, representing about 3.24 per cent of the total paid-up equity share capital of the company, as on March 31, 2017 and representing about 3.23 per cent of the existing total paid-up equity share capital of the company.
The board noted the intention of the promoters and promoter group of the company to participate in the proposed buyback. Emkay Global Financial Services Ltd has been appointed as the manager to the buyback offer.