eClerx has given a nod to buyback 16,37,500 fully paid-up shares of face value Rs. 10 each, which is equal to 4.24% of the total outstanding shares. The buyback price has been fixed at Rs. 1,600 for a share, which is a 41% premium as against the closing price at Rs. 1,134 per share as on March 20.
The total buyback amount is Rs. 262 crore
As per the regulations of the SEBI, 15% of the offer size is fixed for retail investors who hold shares aggregating to less than Rs. 2 lakh in value. Hence the portion fixed for retail investor category is Rs. 262 crore.
Further as there are not many participants who tender shares in the buyback, the acceptance ratio is expected to be higher at 50-60%.
From the offer, investors can expect an absolute return of 20%. Experts advice to purchase 150 equity shares of eClerx at a price of Rs. 1,134 in the open market.