eClerx Services Ltd has announced that the Board of Directors of approved a proposal for Buyback of Equity Shares of the Company, subject to approval by the shareholders, for an aggregate amount not exceeding Rs. 2,580 Millions and being within 25% of the total paid-up equity capital and free reserves of the Company as on March 31, 2017 , at a price not exceeding Rs. 2,000/- per Equity Share (hereinafter referred to “Maximum Buyback Price”) from all existing shareholders of the Company on the record date to be fixed for the said purpose, on a proportionate basis through “Tender Offer” route in accordance with the provisions contained in the Securities and Exchange Board of India (Buy Back of Securities) Regulations, 1998 (“Buyback Regulations”) (including any statutory modification(s) or re-enactment of the Act or Buy-back Regulations, for the time being in force) and the Companies Act, 2013 and rules made thereunder.
At Maximum Buyback Price, the buyback translates into approximately 1,290,000 Equity Shares of the Company, representing about 3.24% of the total paid up equity share capital of the Company, as on March 31, 2017 and representing about 3.23% of the existing total paid up equity share capital of the Company.
The Board noted the intention of the promoters and promoter group of the Company to participate in the proposed Buyback.
The proposed Buyback is subject to approval of the shareholders of the Company, by way of a special resolution through postal ballot (including e-voting) pursuant to Section 110 of the Companies Act, 2013 read with Rules framed there under and all other applicable statutory approvals.
Once approved by shareholders, the public announcement setting out the process, final buyback price and number of shares, timelines and other statutory details will be released in due course in accordance with the Buyback Regulations.