Majesco Limited announces Rs 631 crore share buyback plan
The board of directors of the cloud software solutions provider Majesco Limited today at its meeting approved the proposal of buyback of shares worth Rs 631.26 crore.
The board of directors of the cloud software solutions provider Majesco Limited today at its meeting approved the proposal of buyback of shares worth Rs 631.26 crore. Majesco proposed to buy back up to 74,70,540 fully paid equity shares of Rs 5 each of the company, representing 25 per cent of the total paid-up equity capital of the company as on September 30, 2020, at Rs 845 per equity shares.
The company in a regulatory filing said the Buyback is proposed to be undertaken from the shareholders of the Company on a proportionate basis through the tender offer route.
The Buyback Offer Size does not include any expenses incurred or to be incurred for the Buyback such as filing fees payable to SEBI, advisors' fees, transaction costs viz. brokerage, applicable taxes such as buyback tax, securities transaction tax, Goods and Services Tax, stamp duty, etc., public announcement publication expenses, printing and dispatch expenses and other incidental and related expenses.
Majesco said, the Buyback is subject to the approval of the members through a special resolution. The Public Announcement setting out the process, timelines and other statutory details will be published in due course under the Buyback Regulations. It added the Board has constituted a Buyback Committee to do all such acts, deeds, matters and things as it may, in its absolute discretion, deem necessary, expedient, usual or proper in connection with the Buyback.
Majesco expects share buyback to be completed by December, subject to necessary approvals.
On Wednesday, Majesco reported a consolidated net profit of Rs 2,376.54 crore, 141.5 times up then Rs 16.8 crore posted in the same quarter in last financial year. However, its revenue dropped by 19.2 per cent to Rs 2.12 crore in Q2FY21 compared to Rs 2.57 crore posted in Q2FY20. It reflected Majesco shares today closed at Rs 846.40, down 0.15 per cent from the previous close on NSE.