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Tech Mahindra’ board of director, today, announced the approval of a share buyback for an aggregate amount not exceeding Rs. 1,956 crore at a price of Rs. 950 per equity share. The approved buyback constitutes about 2.10% of the total paid-up equity capital of the company.
According to the company regulatory filings, the board has fixed 6 March 2019 as the record date for the purpose of ascertaining the eligibility of shareholders to participate in the buyback. According to the Tech Mahindra’s statement, the company will buy back shares from the shareholders on a proportionate basis through the tender offer route.
A number of companies, earlier this year, has announced a share buyback offer. IT major Infosys proposed a buyback offer of Rs. 8,260 crores whereas other smaller tech company Persistent Systems’ board approved a buyback offer of up to Rs. 225 crores in January.
Shares of the IT major recorded a new 52-week high of Rs. 840, rising about 3.5% after the approval of share buyback. Earlier this month, Tech Mahindra reported a robust profit growth at Rs. 1,203 crores with an operating revenue of Rs. 8,944 crores.
