eClerx Services Ltd board approves open market buy back at Rs. 550

The Board of Directors of eClerx Services Limited ("Board") at its meeting held today, i.e. on July 6, 2020, which commenced at 10.30 a.m. and concluded at 12.05 p.m., approved the Buy Back of Company's Equity Shares for an aggregate amount not exceeding Rs. 1,095 Millions {Rupees One Thousand and Ninety Five Millions only), 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 viz. brokerage, cost, fees, turnover charges, tax on distributed income on buy back and other applicable taxes such as securities transaction tax, goods and services tax (if any) and income tax, stamp duty, advisors fees, filing fees and other incidental and related expenses etc., ("Transaction Costs") payable in cash for an aggregate amount not exceeding Rs. 1,095 Millions {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 (being the date of the latest audited standalone and consolidated financial statements of the Company), which is not more than 10% of the total paid-up Equity Share capital and free reserves of the Company in accordance with the proviso to the Regulation S(i)(b) of the Buy Back Regulations in accordance and consonance with the provisions contained in the Buy Back Regulations and the Act (hereinafter referred to as the "Buy Back").

The indicative maximum number of Equity Shares proposed to be bought back at the Maximum Buy Back Size and Maximum Buy Back Price under the Buy Back would be 1,990,909 {Nineteen lakhs Ninety Thousand Nine Hundred and Nine) Equity Shares ("Indicative Maximum Buy Back Shares") and if the Equity Shares are bought back at a price below the Maximum Buy Back Price, the actual number of Equity Shares bought back could exceed the Indicative Maximum Buy Back Shares, subject to not exceeding 25% of the total paid up equity capital of the Company.

The Board has also constituted a committee for the purpose of the Buy Back ("Buy Back Committee") and has delegated its power to the Buy Back Committee to do or cause to be done all such acts, deeds, matters and things, deem necessary with regard to the implementation of the Buy Back.

The Board has appointed the undersigned as the Compliance Officer for the purpose of the Buy Back. Emkay Global Financial Services Limited has been appointed as the Manager to Buy Back.

Shares of ECLERX SERVICES LTD. was last trading in BSE at Rs.481.5 as compared to the previous close of Rs. 470.85. The total number of shares traded during the day was 3261 in over 361 trades.

The stock hit an intraday high of Rs. 484 and intraday low of 463.85. The net turnover during the day was Rs. 1555144.

Source : Equity Bulls

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