eClerx Services Limited Buyback 2024

1. Foundation and Services: Established in 2000, eClerx Services Limited offers process and change management, and data analytics services to enhance efficiency, productivity, and business performance for organizations.

2. Services categories: The company’s offerings are divided into three main categories: eClerx Customer Operations, eClerx Digital, and eClerx Market.

3. Employees and Production Centers: eClerx employs over 3,000 full-time staff dedicated to digital delivery across production centers in Mumbai, Pune, Chandigarh, Verona, and Phuket.

4. Industry Focus: The company provides customizable services to industries including finance, telecom, fashion, entertainment, travel, software, and high-tech sectors.

5. Global Presence: eClerx has a local presence in Mumbai and operates globally in countries such as Australia, Canada, Germany, India, Italy, the Netherlands, the Philippines, Singapore, Thailand, the UK, and the US.

6. Clientele and Expertise: Serving numerous Fortune 2000 companies, eClerx offers business process management, automation, and analytics services to top financial services, communications, retail, fashion, media & entertainment, manufacturing, travel & leisure, and technology firms, supported by a diverse and skilled workforce of over 16,000 professionals.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Offer Amount: ₹ 385 Cr.
Date of Board Meeting approving the proposal: May 16 2024
Date of Public Announcement: May 16 2024
Buyback Offer Size: 2.80%
Buyback Number of Shares: 13,75,000
FV: 10
Buyback Price: ₹ 2800 Per Equity Share

Details of Buyback:

The proposal to buyback not exceeding 13,75,000 (Thirteen Lakhs Seventy-Five Thousand) equity shares of the Company (representing 2.80% of the total number of equity shares in the paid-up share capital of the Company) at a price of Rs. 2,800/- (Rupees Two Thousand Eight Hundred) per equity share payable in cash for an aggregate consideration not exceeding Rs. 385 crores (Rupees Three Hundred and Eighty Five Crores Only).

Salient financial parameters:

Particulars (In Cr) Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024
Sales + 1,438 1,564 2,160 2,648 2,926
Expenses + 1,111 1,115 1,498 1,925 2,151
Operating Profit 326 450 662 723 775
OPM % 23% 29% 31% 27% 26%
Other Income + 45 34 24 66 64
Interest 20 21 23 22 23
Depreciation 71 82 103 114 126
Profit before tax 281 381 560 653 689
Tax % 26% 26% 25% 25% 26%
Net Profit + 209 283 418 489 512
EPS in Rs 37.65 54.03 82.33 99.71 104.33
Dividend Payout % 2% 1% 1% 1% 1%

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of  eClerx Services Limited in Demat or physical form as on the record date [To be updated].
2. Once you have shares in Demat, you can participate in the buyback process which is opening from [To be updated] by selling your shares through your broker on NSE or BSE.
3. Then on [To be updated], 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 71 Shares at CPM of Rs. 2268 (2,00,000/2800)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 161028 161028 161028 161028
No. of Shares Buyback 23 35 53 71
Buyback Profit 12236 18620 28196 37772
Profit% 7.60% 11.56% 17.51% 23.46%

28 Comments

    Record date for the buyback gone on 4.7.2024. But IZ haven’t updated on the portal

    July 4,2024 is record date and accordingly it will open.

      Open 9th July 2024 and closing on 15 July 2024 and finalisation on 22nd July 2024

    Dear senior Members,

    Can any one inform expected record date & opening date.for Eclrex buyback.

    Made a position in Eclerx for buyback on 05.06 , 60 at 2133.40

    Hoping to go in Buyback or sell at 2400

    Made a position in Eclerx for buyback on 05.06 , 60@2133.40

    Hoping to go in Buyback or sell at 2400

      This one has already crossed your line by more than a great margin, Sumit ji. May I know your situation/stand now.I feel eclerx to be more prominent among the present/current lot.

    Please guide me how to report profit (capital gain) in ITR-2 on sale of shares under Buyback to save Income Tax liability, Thanks in advance.

      Please download the Scedule named Exempt Income before you start filing your ITR2 and declare your total gain from buyback. Simple as that.

        OK, I will report capital gain from Buyback under “Any other income”? As there is no separate clause for reporting “income from Buyback”.

          Buyback gain is exempt from Income tax u/s 10(34 A) read with section 115Q A. As rightly stated by you,it is not figuring in the list of Exempt Income in Schedule E I . Yes, it may be shown as “Any other income.”

        Under “Exempt Income Schedule” buyback income under Section 10(34A) is not listed. Shall we show this income in other under “Exempt Income Schedule”? Please guide

    Bought in 2 accounts today at 2165 and 2 accounts at 2270 on Friday.
    79 shares in each

    Let’s see what happens , attractive size and premium so I’m expecting 20% AR minimum and more if less participants here.

      AR will be around 38%, same as last trouble buybacks.
      Buy maximum as per retail category and hold. It has been consistently rising since 2019. Regularly rewarding shareholders

      Exited today all at 2500.
      Thanks Bhagvan , one of the best buyback of my life 🙏

      Jis din election declair hota hai usi din elections ke final result ko puchana kaha tak sahi hai ?
      Please wait.

        Girish Ji, Analogy Zabardast hai…..
        🙂 🙂

          Very happy to see your return to the zone 😊. Hope to see you more often.Missing Rohit ji also since long.

            Hello Gopi,

            How you doing? Sorry for not being active over the last 4-6 months due to some business issues on my end. I am getting back to track slowly and will be active after couple of months.

              Thank you for your kindness in enquiring about me, Rohit ji.Last fifteen months have been excellent for me in terms of gains from the market. Hope this is the case with all of us including you. Have been missing you really.Happy to know that you will be around.Wish you good luck

        Enjoying the humour in the comment😀. I think AR will have a real relationship with the outcome of the election.Larger the Winners majority, greater will be the AR.

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