MphasiS Limited announces an Equity Buyback for 17,370,078 shares, for INR 11,030 million.
January 31, 2017 at 08:01 pm IST
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MphasiS Limited (BSE:526299) announces a share repurchase program. Under the offer, the company will repurchase up to 17,370,078 shares, representing 8.26% of the paid up share capital. The shares will be purchased at a price of INR 635 per share for INR 11,030 million. The shares will be repurchased from all the existing shareholders of the company on a proportionate basis. The shares will be purchased in accordance with the provisions of Securities and Exchange Board of India Regulations, 1998 and the Companies Act, 2013. The program will be funded out of internal accruals of the company. The purpose of the program is to increase earnings per share, return on capital employed and create long term value for the shareholders. The program helps the company to distribute surplus cash to its shareholders in proportion to their shareholding. The offer would be subject to approval of the shareholders of the company by way of a special resolution through postal ballot and all other applicable statutory approvals. The Board noted the intention of the promoter of the company to participate in the buyback. The offer will expire on May 25, 2017.
On March 15, 2017, the company announced the record date for buyback program to be March 31, 2017.
As on April 28, 2017, the company announced that shares will be repurchased from the shareholders holding shares on the record date on or before May 4, 2017.
Mphasis Limited is an India-based company, which applies design, architecture, and engineering services, to deliver scalable and sustainable software and technology solutions. The Company's segments include Banking and Financial Services, Logistics and Transportation, Technology Media and Telecom, Insurance, and Others. It uses its Front2Back transformation approach, which uses cloud and cognitive to provide personalized digital experiences to clients and their end customers. It provides a range of services, which includes application services, blockchain platform, business process services, cloud, cognitive, cyber security, digital, enterprise automation, infrastructure services, products engineering, XaaP (Everything as a Platform) services, and others. It serves various industries, which include banking-capital market, insurance, healthcare and life science, payments, hospitality, travel and transportation, energy and utilities, oil and gas and others.