The board of Majesco has approved a tender buyback of shares worth Rs 631.26 crore. The company will be buying back 74.7 lakh shares, around 25 percent of its outstanding equity base.
The buyback price at Rs 845 per share is tax-free in the hands of shareholders. This is a way to distribute the entire proceeds to shareholders, Farid Kazani, Managing Director of the company said in an interview to CNBC-TV18.
The buyback and the dividend payout will happen more or less simultaneously once the company gets the shareholder and SEBI approval for the buyback.
"The reason why we are doing a share buyback first and a dividend followed immediately is to create an equitable distribution across categories of shareholders that would have different tax regimes," he said.
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