eClerx Services Buyback 2022

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 Record Date: Dec 27 2022
Buyback Opening Date: Feb 03 2023
Buyback Closing Date: Feb 16 2023
Buyback Offer Amount: ₹ 300 Cr
Date of Board Meeting approving the proposal: Nov 10 2022
Date of Public Announcement: Nov 10 2022
Buyback Number of Shares: 17,14,285
Price Type: Tender Offer
FV: 10
Buyback Price: ₹ 1750 Per Equity Share

Details of Buyback:

The proposal to buyback not exceeding 15,78,947 (Fifteen Lakh Seventy Eight Thousand Nine Hundred and Forty Seven) equity shares of face value of Rs. 10 of the Company (representing 15% of the total number of equity shares in the paid-up share capital of the Company) at a price of ~ 1750 per equity share payable in cash for an aggregate consideration not exceeding 190 Cr (Rupees One Hundred and Ninety Crore Only).

Salient financial parameters:

Particulars ( Cr. ) Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
 Sales 1144.02 1139.82 1120.17 1197.4 1551.31
 Power and Fuel 7.71 8.74 7.72 6.57 6.14
 Other Mfr. Exp 30.23 34.4 44.2 48.82 64.68
 Employee Cost 437.2 461.59 484.68 479.87 605.09
 Selling and admin 334.16 369.75 328.05 279.39 343.4
 Other Expenses 7.96 9.88 13.03 21.97 7.29
 Other Income 65.03 55.83 3.87 32.61 20.55
 Depreciation 29.6 26.16 44.59 50 51.67
 Interest 0.75 0.77 18.45 19 16.77
 Profit before tax 361.44 284.36 183.32 324.39 476.82
 Tax 83.31 74.75 59.74 85.59 121.92
 Net profit 278.12 209.61 123.57 238.79 354.9
 Dividend Amount 3.86 3.87 3.7 3.4 3.31

How to Participate in buyback?

1. Firstly to be eligible for the buyback the investor should have shares of Eclerx Service Limited Buyback 2022 in demat or physical form as on record date [27-12-2022]. 2. Once you have shares in demat, you can participate in the buyback process which is opening from [03-02-2023 to 16-02-2023] by selling your shares through your broker on NSE or BSE. 3. Then on [23-02-2023], 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 114 Shares at CPM of Rs 1379 (2,00,000/1750)
Acceptance Ratio 33% 50% 75% 100%
(i) Amount Invested in Buyback 1,57,206 1,57,206 1,57,206 1,57,206
(ii) No. of Shares buyback 37 57 85 114
(iii) Buy Back Profit 13,727 21,147 31,535 42,294
(iv) Profit(%) 8.7% 13.4% 20.05% 26.9%


Review and Recommendation of  eClerx Services Buyback Offer 2022 from IZ team is: 4/10 [Good arbitrage of 25% is available in the buyback. The growth in the financials for FY22-23 is fair. ]



    I obtain figures from latter of offer and bid submitted with BSE. 40% is an assumption as per previous buyback and bis submitted by individual shareholder.

      Got it. I think 40 looks like a conservative guess. Compared to last year, this years size is double that of last year in terms of equity. Since the subscription is comparatively less than last year, it would not be a surprise if the AR comes anywhere between 60 to 80%. Fingers crossed.

    Total Quota for retails Shareholder was 257,143 shares

    Total Individual Sharehole tender 13,48,584 no of Share.

    Total Retail Shareholder eligible for buyback was 1,687,825 and Apx 40% i.e. 6.75 lakh participated according to this calculation AR would be around 35-50% or maybe more.

    7 (Seven)Equity Sharesfor every 46 (Forty Six) Equity Shares for small share holder
    Around 15% ER. Not great … Overall expect 30-40% AR

    I expect eClerx shares will be down on Monday (26/12) – as it becomes Ex-date for Buyback eligibility.
    (Risky bet:- we can sell the holdings at 9:15 AM on Monday and buy later on same day or next day for little cheaper).

      3.38 per cent of the total number of equity shares in the total paid up equity share capital of the Company.

    This is to inform you that a meeting of Buy Back Committee of the Board of Directors of the Company is scheduled to be held on Thursday, December 15, 2022, inter-alia, to consider and approve the final terms and conditions of buy back of Equity Shares of the Company, subject to shareholders’ approval

    Hello! Can I sell shares post record date of buyback?. Let say if i want to exit 50% quantity and keep remaining qty

      No.of Shares held on the Record Date is the criteria for arriving at the ENTITLEMENT RATE/ RATIO whereas the No. of shares held on the Record Date and submitted for the buyback is the criteria for arriving at the ACCEPTANCE RATE/ RATIO. It is always advantageous to submit all the shares held on the Record Date for the buyback. All the best.

      These are the Dark horses, we never even heard of. Thanks for informing such companies

        Sumit ji,

        I also have missed the great opportunity due to some compelling reasons. The size of the buyback was 1,00,00,000 shares n the buyback price was Rs. 28/- as against the market price of around Rs.21/-. Of course, some times it happens. Past is past. Let us hopefully look forward for the remarkable number of the present Buybacks. All the best. Thank you.

      Size of the buyback is 15,00,000 shares in r/o TECHNOCRAFT INDUSTRIES.

        Thanks Girish ji. and SRK ji

        Can you kindly suggest if current rate of 854 is Ok for the Buyback.. I think it should be better to buy at ~800…
        ER would be ~12% and AR may go ??? Kindly suggest

          Sumit ji,

          In my opinion, CMP of Rs. 842/- is quite reasonable. However,tomorrow, you may hopefully wait to get it for around Rs.825/-to further proceed to purchase. All the best. Thank you.

    Hello! Thanks for creating separate page.

    What would be the effect of Feb 2022 Bonus.. Actually the Share have doubled…

      Sumit ji,

      I am hopefully looking forward for a reasonably good profit in this buyback as there may not be much effect of the bonus on the price. Of course, I may tend to go wrong due to my inadequate knowledge, experience n study. Thank you n all the best.

    Bought 100@averate of 1422.00. Hopefully would be profitable.
    Thanks SRK ji for enhancing conviction.

    A good opportunity to participate in a good Buyback. Last year i am benefitted by around Rs.25000/-. All the best to all of you. Thank you.

      Thanks SRK ji. Can you kindly provide the complete details of Rs 25K, as how much %age acceptance and how much due to increase in market price?

        Hi Sumit Last year the ER was 18% and final AR came out to 38%. Same could be expected this time too as not many people are aware of this small cap company.

          Sumit ji,

          In general, the price of the shares after the buyback will be less to some extent. One of the exceptional cases is undoubtedly eClerx Services. AR was around 38% as mentioned above. All these positive things contributed in my gaining of the said amount of Rs. 25,000/-. Thank you n all the best.

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