eClerx Services Limited completes buyback of 2,093,815 shares

Pursuant to the resolution passed by the Board on July 06, 2020, eClerx Services Limited ("Company") approved the Buy Back of Company's fully paid-up Equity Shares, at a buy back price not exceeding Rs. 550/- (Rupees Five Hundred and Fifty only) per Equity Share ("Maximum Buy Back Price") from the shareholders / beneficial owners of the Company (other than those who are Promoters, members of the Promoter Group and persons in control of the Company) ("Eligible Shareholders") excluding Transaction Costs payable in cash for an aggregate amount not exceeding Rs. 1,095,000,000/- (Rupees One Thousand and Ninety Five Millions only) (hereinafter referred to as the "Maximum Buy Back Size"), being 9.98% and 8.37% of the total paid-up Equity Share capital and free reserves of the Company based on the latest standalone and consolidated audited financial statements of the Company respectively, as at March 31, 2020, which is not more than 10% of the total paid-up Equity Share capital and free reserves of the Company in accordance with the regulations.

The Company commenced the Buy Back on Friday, July 10, 2020, from the Eligible Shareholders from the Open Market through the Stock Exchanges mechanism under the Buy Back Regulations.

The Company has bought back 2,093,815 (Two Million Ninety Three Thousand, Eight Hundred Fifteen) Equity Shares at an average price of Rs. 522.97/- per Equity Share and utilized Rs. 1,094,999,968/- (Rupees One Thousand and Ninety Four Millions, Nine Hundred and Ninety Nine Thousand, Nine Hundred and Sixty Eight only), which is 100% of the Maximum Buy Back Size (excluding Transaction Costs) with an unutilized balance amount of Rs. 32/- (Rupees Thirty Two only). Hence, the Buy Back Committee of the Company vide its resolution by way of circulation passed today i.e., Wednesday, July 22, 2020, took on record that the Company has utilized Rs. 1,094,999,968/- (Rupees One Thousand and Ninety Four Millions, Nine Hundred and Ninety Nine Thousand, Nine Hundred and Sixty Eight only), which is 100% of the Maximum Buy Back Size (excluding Transaction Costs) and therefore, approved the closure of the Buy Back with effect from today i.e., Wednesday, July 22, 2020, prior to the scheduled closure date of Buy Back.

The Company will extinguish 2,093,815 (Two Million Ninety Three Thousand Eight Hundred Fifteen) Equity Shares in accordance with the provisions of the Buy Back Regulations. Post extinguishment of the shares, the equity share capital will comprise 34,889,586 equity shares from the pre buy-back level of 36,983,401 equity shares. With this buyback, promoters stake in the company has increased from 50.76% to 53.81%.

Shares of ECLERX SERVICES LTD. was last trading in BSE at Rs.497.2 as compared to the previous close of Rs. 523.4. The total number of shares traded during the day was 10528 in over 749 trades.

The stock hit an intraday high of Rs. 536.65 and intraday low of 494.2. The net turnover during the day was Rs. 5515627.

Source : Equity Bulls

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