Shares of NIIT Technologies rallied as much as 9.08% on Friday after the company announced that its ₹337.4-crore buyback offer will commence from May 29.
After hitting an intraday high of ₹1573.45 apiece on the BSE, NIIT Technologies closed 4.37% higher at ₹1505.50, while the benchmark Sensex dropped 0.84% to close at 30672.59 points.
With today’s rally, the stock of NIIT Technologies has more-than-doubled from its 52-week low of ₹739 touched on March 24, 2020.
In December last year, board of NIIT Technologies had approved a proposal to buy back up to 1.95 million representing 3.13% of the total number of equity shares fully paid-up equity shares of a face value of ₹10 each at a price of up to ₹1,725. The buyback proposal, through the tender offer route, aggregated up to ₹337.46 crore.
According to the update provided to the stock exchanges, NIIT Technologies said the buyback offer will close on June 11.
"This is to now inform you that pursuant to the Sebi circular dated May 14, 2020, where certain relaxations were granted relating to procedural matters for takeovers and buybacks, the company has completed the dispatch of the letter of offer to the eligible shareholders holding shares as on record date March 12, 2020" it said.
NIIT Technologies had reported a 11.4% rise in consolidated net profit to ₹113.6 crore for the March 2020 quarter, and said strong tech capabilities and sharp execution helped the company in winning large deals.The company had posted a net profit of ₹102 crore in January-March 2019 quarter, NIIT Technologies said in a statement.
Its consolidated revenue grew 19% to ₹1,109.3 crore in the march quarter from ₹931.9 crore in the year-ago period.
“Consistent performance under the new leadership through FY2018-2020 has driven NIIT Technologies’ relative valuation premium to peers. We cut FY21/22E EPS by 8/2.3% to ₹68/86.5 on lower margin assumptions as we incorporate recently unveiled RSU plan and lower share count assuming buyback to be completed by Q1FY21-end," analysts at Emkay Global Financial Services said in results update.