Majesco Buyback 2020

(i) Majesco is strategic partner insurers count on to deliver digital business transformation. They combine technology, expertise and leadership to help insurers modernize, innovate and connect to build the future of their business – and the industry – at speed and at scale.

(ii) An insurance platform, like Majesco Digital1st Insurance® is a portfolio of solutions designed to enable those journeys. It includes an innovative microservices platform to support products and business models in an on-demand world.

(iii) Majesco works with insurers, reinsurers, brokers, MGAs as well as greenfields and start-ups in the insurance industry. They have over 200 customers across P&C, L&A and Group Benefits who are transforming their businesses by modernizing, optimizing or creating new business models with Majesco solutions.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Nov 13 2020
Buyback Opening Date: Nov 27 2020
Buyback Closing Date: Dec 11 2020
Buyback Offer Amount: ₹ 631.26 Cr
Date of Board Meeting approving the proposal: Oct 08 2020
Date of Public Announcement: Oct 08 2020
Buyback Offer Size: 25%
Buyback Number of Shares: 74,70,540
Price Type: Tender Offer
FV: 5
Buyback Price: ₹ 845 Per Equity Share

Details of Buyback:

The Board of directors of Majesco Limited (“Company”) at its meeting held on October 8, 2020, has inter-alia approved the proposal to buyback up to 74,70,540 fully paid equity shares of Rs. 5/- each of the Company (“Equity Shares”) (being 25% of the total paid-up equity capital of the Company as of September 30, 2020) at a price of Rs. 845/- (Rupees Eight hundred forty-five only) per Equity Share (“Buyback Offer Price”), for an aggregate amount not exceeding Rs. 631,26,06,300/- (hereinafter referred to as the “Buyback Offer Size”) (being less than 25% of the total paid-up equity capital and free reserves of the Company as on September 30, 2020)

Salient financial parameters:

Particulars(Cr) Mar-16 Mar-17 Mar-18 Mar-19 Mar-20
Sales 757 826 806 988 1,040
Expenses 752 804 784 896 929
Operating Profit 5 23 22 92 111
OPM % 1% 3% 3% 9% 11%
Other Income 9 8 22 34 42
Interest 4 8 5 4 2
Depreciation 18 17 18 20 34
Profit before tax -8 6 21 103 117
Tax % 195% -21% 87% 30% 23%
Net Profit 7 5 6 54 69
EPS in Rs 2.99 2.17 2.24 19.07 24.09
Source: Screener

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of Majesco Buyback 2020 in demat or physical form as on record date [13.11.2020] 2. Once you have shares in demat, you can participate in the buyback process which is opening from [27.11.2020 to 11.12.2020], by selling your shares through your broker on NSE or BSE. 3. Then on [Not 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:

The buyback price is less than the current market price of shares. So there is no arbitrage available.


Nothing is there in the buyback at present. This buyback would have any meaning only if the price fell below 800. Then investors can leap on to this to take advantage of the arbitrage opportunity.


    Majesco Buyback Dates Announced:-
    Tender Dates:- 27 Nov. 2020 – 11 Dec. 2020
    Payment /Settlement Date:- 22 Dec. 2020

    So, expect announcement for dividend during Jan’21 period also the price has shot up and left very little margin for profit from dividend route .If you are planning to buy now. Please avoid.

    If you are an retail investor and trying to enter now you can go ahead but there are some conditions:-
    a> This suggestion is not for buyback participation.
    b>You will have to hold till Jan’21.
    c> You will have to be in the NIL tax bracket or less than 10% bracket at the most.

    The company will announce the dividend within Dec’20- Jan’21 after the buyback.Then after the dividend ex-date is over the share will correct to 40-50. Then you will have to sell the share within March’21 at the most and book a loss which you can show as capital loss in your IT filling which you can carry forward for adj. in your profits for next year and the dividend will not be taxed since you are in the NIL bracket. (for TDS fill 51G/51H as applicable and you will get the full dividend without any deduction) .Consult your CA/FA before taking any action on my strategy as I will not be liable for any fallout from the same.

      Yes, also if you have some DP in nae of family, which are non taxable, you can buy.
      I still believe it would show Rs 800/- before buyback record date and would be a very good rate to enter…

      If the dividend is 1000 rs why hasn’t it shot up. Considerable
      And shouldn’t it crash after dividend is given
      Why just 40-50rs

        Wait for the dividend announcement in Dec’20-Jan’21 .Then it will react accordingly.

        40-50 rs due to property & real estate holdings. kuch toh homework karliya karo.. aashish ji.

        Hello parthg

        Ex dividend
        Stock crashed to levels I presumed
        It will still go down to its face value that is 5
        The property holdings worth would be rs 5 per share only

        Mostly you could have benefitted only by saving on stcg
        That too when you are able to sell the share and u fall in 0 tax bracket
        Going forward I think there will only be sellers and no buyers until it comes to rs 5

    This is a Different class!!!
    The current price is Rs 852/- while the buyback price is Rs 845/-..
    Because of the US sales company is sitting on cash and had decided to give dividend of Rs 1000/- + to the remaining shareholder, after buyback..
    Tax implications…
    Buyback – No Tax
    Dividend – Tax on the receivers..
    So if you are a non tax payer than you have some thing still at Rs 850/-..

    Company has approved the proposal to buyback upto 74,70,540 fully paid equity shares of Rs. 5/- each of the Company at a price of Rs. 845/- Price”), for an aggregate amount not exceeding Rs. 631,26,06,300/.

    Thanks for starting on Majesco.
    Those who are not aware…
    Majesco is mostly active in USA and is a holding company of Majesco listed in Nasdaq. Now that company has been sold and Majesco India has received a huge windfall of around Rs 1200+ per share. The company is surely going to be closed in 6 to 9 months, and buyback is the way to distribute money received by sales of Majesco US.

    Any addition?

      Are you saying Majesco India will be closed down after buyback & Dividend Distribution ? And if yes will they delist the remaining shares after Jan’21 once the dividend distribution is also completed .Please share your opinion.

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