NIIT Technologies announced Rs. 337 crore share buyback offer. As part of the offer, the company proposed to buyback up to 19,56,290 fully paid shares of face value of Rs. 10 per share at a price of up to Rs. 1725/ shares, totaling to as much as Rs. 337.46 crore.
The proposed buyback of shares equates to as much as 20.23% of the paid up share capital and free reserves of NIIT. As of December 20,2019, promoters have a stake of 70.12 per cent in the company. Further, the buyback will be carried out under the tender offer route via proportionate basis.
The buyback is subject to “approval of the shareholders by means of a special resolution through postal ballot and regulatory approval(s) as may be required,” the company said. Also, the timeline of the buyback will be announced in due course of time subject to grant of required approvals.
In comparison to Monday’s closing price of Rs. 1577, the proposed buyback price is around 9% higher.
In Q2FY20, the IT company reported a 8.2% growth in consolidate revenues q-o-q at Rs. 1038.5 crore while its net profit scaled higher by 17% q-o-q to Rs. 119.5 crore. The company announced an interim dividend of Rs. 10 per share.
The stock was last quoting at Rs. 1598, up 1.28%, while it made an intra-day high of Rs. 1626 per share on the BSE.