Majesco Ltd - Quick Comment - ICICI Securities

Post the completion of sales of Majesco US, Majesco India has cash of Rs. 3072 crore, implying a value of Rs. 1028/share. The company plans to distribute the same via buyback and dividend. The company has announced a buyback of 74.7 lakh shares for Rs. 845/share amounting to ~Rs. 631 crore (this is post tax figure and pre-tax buyback amounts to ~Rs. 778 crore). The company plans to distribute remaining ~Rs. 2295 crore (~Rs. 1020 per share if buyback is on proportionate basis) via dividends and aims to distribute the same by December 2020 or January 2021. We recommend that shareholders with lower dividend tax incidence tender proportionate shares in the buyback process so that they can participate in the dividend distribution process. In addition, the company also has real estate of ~1,20,000 square feet at Mahape, Navi Mumbai. The realisable value of this real estate is yet to be determined. However, once it is sold the amount will be distributed to shareholders.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_Majesco_QC_Oct20.pdf

Shares of Majesco Ltd was last trading in BSE at Rs.847.05 as compared to the previous close of Rs. 847.15. The total number of shares traded during the day was 79868 in over 1905 trades.

The stock hit an intraday high of Rs. 873 and intraday low of 804.8. The net turnover during the day was Rs. 67191338.

Source : Equity Bulls

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