Homefinance News

    Tech Mahindra approves its first ever share buyback plan

    Tech Mahindra approves its first ever share buyback plan

    Tech Mahindra approves its first ever share buyback plan
    Profile image

    By CNBC-TV18  IST (Updated)

    Mini

    The company said it will repurchase up to 2.05 crore shares via tender route at a price of Rs 950 per share for an aggregate amount of Rs 1,956 crore.

    Tech Mahindra’s board of director approved a share buyback plan of up to Rs 2,000 crore. The company said it will repurchase up to 2.05 crore shares via tender route at a price of Rs 950 per share for an aggregate amount of Rs 1,956 crore.
    The per share buyback price represents a premium of nearly 17 percent compared to the previous day’s closing price on the NSE.
    Tech Mahindra shares jumped as much as 3.39 percent intraday to hit its 52-week high of Rs 840 per share on the NSE. The stock of the company closed 1.07 percent up at Rs 820.40 on the BSE.
    Manoj Bhat, CFO of the company, told CNBC-TV18 that the buyback announcement is a capital allocation decision and the company plans to conduct shares buybacks on an annual basis in line with other industry peers.
    “We would not like to retain too much excess cash in the company and in line with that the board will consider the quantum of dividend but we will go for dividend plus buyback kind of strategy into the future based on the needs of the business,” said Bhat.
    Sandip Agarwal of Edelweiss Securities said Tech Mahindra's share buyback plan hints that there will not be any big acquisition for the next few quarters.
    "It is basically answering all the questions and worries and concerns in one go. It answers that there will not be any big-bang acquisition right now for the next few quarters at least and it also says that we are concerned about returning money to the shareholders in line with other IT companies," he told CNBC-TV18.
    Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
    arrow down

      Most Read

      Market Movers

      View All
      CompanyPriceChng%Chng