InvestorQ : Is the Eclerx buyback worth applying for? What is your view?
Anjana Aiyar made post

Is the Eclerx buyback worth applying for? What is your view?

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Arya Nanda answered.
3 months ago
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Eclerx saw its stock price spurt by 11% to Rs 528 the board of Eclerx announce that it would meet to consider a share buyback proposal. Currently, the promoters are holding 50.76% in Eclerx while mutual funds hold 21.11% while foreign portfolio investors of FPIs hold 17.56%. The remaining 5.96% of the shares are held by individual shareholders.

Eclerx stock has underperformed the market in last one year, falling 29% even as the Sensex fell by just 8% during the same period. The company has the potential to conduct a buyback in the range of up to Rs.250 crore, or around 15% of the market cap of the company. This is likely to enhance the EPS of the company by distributing the profits among lesser shares.

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