The share price of Tech Mahindra Limited rallied more or less 1 percent soon after to an intraday high of Rs795.45 per share on NSE, on Monday.
This is because of Tech Mahindra’s Rs1,956-Crore buyback offer opened for subscription on Monday. The company has planned to buyback 2058Crore shares, representing 2.10% of the total number of equity shares in its paid-up share capital, @Rs 950 per share. The offer closes on 5th April.
As indicated in our market opening news this morning, Tech Mahindra share buyback of Rs1,956-crore is open for subscription today. The company aims to buy back up to 2.06-Cr shares at Rs950 a share.
Tech Mahindra buyback offer is through a tender procedure on a proportionate basis and entails only shareholders whose names appeared on the company’s books on March-6 will be permitted to participate in it.
The buy back in shares is generally expected to perk up return on equity through the distribution of cash and improve earnings per share (EPD) by reduction in the equity base, whereby leading to long term increase in members’ value.
Meanwhile, at 12.30 am, Tech Mahindra share price quoted at Rs790.35 and in comparison, BSE’s Sensex continued its decline by as much as 400 points at 37764, and the Nifty50 of NSE falls 121 points at 11,335.25