A day after announcement of buyback by Majesco, its shares in Friday's trade (October 9, 2020) jumped another 5% to hit a day's high of Rs. 889 per share on the BSE. This is a 5% premium price in comparison to the buyback price announced of Rs. 845 per share.
"The board of directors of Majesco on Thursday approved the proposal to buyback up to 7.47 million equity shares, representing 25 per cent of the total paid-up equity capital of the company, as on September 30, 2020, at a price of Rs 845 a share, for an amount not exceeding Rs 631.26 crore," Majesco said in a regulatory filing.
The stock in the last three months saw a stellar rally of over 140 percent in comparison to gains of just 10% on the Nifty index.
The proposed buyback shall be undertaken on a proportionate basis via the tender route.