eClerx Services Limited (NSEI:ECLERX) announces a share repurchase program. Under the offer, the company will repurchase up to 1,375,000 shares, representing 2.8% of its share capital for INR 3,850 million worth of its shares. The shares will be repurchased at a price not exceeding INR 2,800 per share.

The repurchases will be funded out of the Company?s current surplus and/or cash balances and/or current investments and/or cash available from internal resources of the Company. The purpose of the buyback is to return surplus cash to its shareholders, enhancing the overall return to the shareholders, improving return on equity due to reduction in the equity base and achieving an optimal capital structure. The share repurchase program is subject to approval of shareholders by way of a special resolution through a postal ballot.

The program is valid within 12 months from the date of Special Resolution approving the Buy Back. As of May 10, 2024, the company had 49,025,359 issued and outstanding shares.