eClerx Services Buyback 2021

eClerx was founded in 2000 by Anjan Malik and PD Mundhra with the goal of transitioning, managing and transforming complex business processes. Following successful careers in investment banking, Anjan and PD, graduates of University of Pennsylvania’s Wharton School of Business, jointly identified significant opportunities for providing innovative services and solutions to large global companies undergoing rapid business transformation challenged by legacy systems, new technology, data inaccuracies, and ever-changing processes and workflows. Created from humble beginnings in a small office in Mumbai, today eClerx employs over 9000 people with offices located in the US, UK, India, Italy, Ireland, Thailand, and Singapore.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Offer Amount: ₹ 303
Date of Board Meeting approving the proposal: Aug 13 2021
Date of Public Announcement: Aug 13 2021
Buyback Offer Size: 20.59%
Buyback Number of Shares: 1063157
Price Type: Tender offer
FV: 10
Buyback Price: ₹ 2850 Per Equity Share

Details of Buyback:

1. The Board approved the proposal of Eclerx buyback of fully paid-up equity shares of face value  10 each of the Company for an amount not exceeding  303 Crores. 2. Eclerx Buyback 2021 Size is being 24.98% and 20.59% of the aggregate of the total paid-up Equity Share capital and free reserves of the Company based on the latest standalone and consolidated audited financial statements of the Company respectively as on March 31, 2021. 3. Eclerx Buyback 2021 price is  Rs.2850 per Equity Share  through the "tender offer"route, on a proportionate basis.

Salient financial parameters:

 
Particulars (in Cr) Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Sales 1,314 1,330 1,365 1,431 1,438 1,564
Expenses 833 869 998 1,122 1,113 1,116
Operating Profit 481 461 367 309 325 448
OPM % 37% 35% 27% 22% 23% 29%
Other Income 37 28 61 49 47 34
Interest 1 2 1 1 20 20
Depreciation 57 52 48 45 71 82
Profit before tax 460 436 380 311 281 381
Tax % 26% 19% 24% 27% 26% 26%
Net Profit 342 354 290 228 209 283
Source:Screener

How to Participate in buyback?

1. Firstly to be eligible for the buyback the investor should have shares of Eclerx Service Limited Buyback 2021 in demat or physical form as on record date [To be announced ]. 2. Once you have shares in demat, you can participate in the buyback process which is opening from [ To be announced] by selling your shares through your broker on NSE or BSE. 3. Then on [ TO be announced ], the payment will be given to you for accepted shares and unaccepted shares will be returned to your demat account.

Profit from the buyback on the bases of acceptance Ratio:

Buy 62 Share at CMP of Rs.2170 [2,00,000/3200=62 )
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 1,34,540 1,34,540 1,34,540 1,34,540
No. of Shares buyback 20 31 46 62
BuyBack Profit 20,600 31,930 47,380 63,860
Profit% 15% 23% 35% 47%

Recommendation:

Review and Recommendation of Eclerx Service Limited Buyback 2021 by IZ team is: 4/10 Fair: 1-5 Good:5-7 Excellent: 7-10 [ There is an upside of 47% from CMP of 2170, however, the size of the buyback is small and AR won't be more than 20% unless price moves appreciably closer to buyback price. One share can be bought because last time also it was accepted.]

22 Comments

    Company has changed the Final Buy Back price at Rs. 2,850/- per equity share (the “Buy Back Price” ) and the aggregate amount of BuyBack upto Rs. 303 Crores

    Record date for buyback of the shares of eclerx services is likely to be announced shortly. Please act accordingly n purchase the shares watchfully, if not already purchased. Thank you.

        Tarun Dalda ji,

        Record date for eclerx is 30/9/21 and for R Systems it is 27/8/21. Please note.

          Sir,
          I have typed Davda. But it was auto corrected as Dalda. Dalda may please be read as Davda. Davda sir, I am really sorry for it wholeheartedly. Good night.

    Please create a page for Kaveri Seeds Buy back.
    Also request experts to comment, if we should buy it now?

      Sumit Jain ji,
      Though I am not an expert in this regard yet I humbly submit that it is always better to wait for the details of the buyback i.e., Buyback price, type of the buyback (Tender/ Open), size of the buyback etc.,. My bitter experience of purchasing shares without having the details of buyback on hand has resulted in difficulty. Hence, this suggestion.

        Thanks SivaRamaKrishna for your wonderful suggestion…

        Still Stock market is all about risk..
        We need to balance Pros and COns and take informative step…

        I bought for around 58K and would buy / sell as per 25th August meeting…

        Thanks again

            Buyback is through Open Offer @ not exceeding Rs.850/-. Max size 14,11,780 shares. Please be cautious and act accordingly.

              Thanks SIVA,
              I quit completely yesterday at around 5% profit…
              May enter again if available at 550

                Sir,
                I am happy to note that you are benefitted with significant profit. Congratulations n all the best to you in all your future activities. Thank you very much for your response.

    1-1 share buy karloh….Accept hua toh Rs.1000 mil jayega…

      Umesh Sir,
      Pray for your kind guidance n views like expected AR of the buyback. Thank you very much.

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