Majesco Limited announces ₹631 crore share buyback

The board of Majesco Limited at its meeting held today approved a proposal of buyback of shares worth up to ₹631 crore. Majesco proposes to buyback up to 74,70,540 fully paid equity shares of ₹5/- each of the company, representing 25% of the total paid-up equity capital of the company as on September 30, 2020) at a price of Rs. 845.

The buyback is proposed to be undertaken from the shareholders of the company on a proportionate basis through the tender offer route.

"The buyback is subject to approval of the members by means of a special resolution. The Public Announcement setting out the process, timelines and other statutory details will be published in due course in accordance with the buyback Regulations," Majesco said.

Majesco shares were currently trading at ₹817, down 3.56% from the previous close. Majesco shares had hit a 52-week high of ₹884.85 on Wednesday, ahead of the anticipated buyback announcement.

Majesco expects share buyback to be completed by December, subject to necessary approvals.

Tata Consultancy Services (TCS) on Wednesday announced a mega- ₹16,000 crore buyback plan at ₹3,000 per equity share. In 2017 and 2018 too, TCS had undertaken buyback offers of similar sizes.

Meanwhile, smaller rival Wipro has also announced that its Board will consider a buyback plan on October 13. However, no other details were provided.

The TCS' offer price of ₹3,000 per equity share is 9.6% higher than the stock's closing at ₹2,737.40 on BSE on Wednesday.