Majesco's shares slipped up to 5 percent on Thursday after the company announced a Rs 631 crore share buyback plan, at a price that fell short of market expectations. The stock slipped as much as 5 percent to Rs 806 per share on the NSE. At 12:15 pm, the shares traded nearly 2 percent lower at Rs 832.
In its exchange filing, the company said that the share buyback of up to Rs 631 crore at a price of Rs 845 per share. The company will buy 74,70,540 shares from shareholders.
The stock hit a fresh record high after the company said it will consider a buyback proposal in the board meeting. Post the announcement, the shares were locked in a 5 percent upper circuit at Rs 858.95 per share on BSE, which was also its new all-time high.
Majesco is the second information technology (IT) firm to announce a share buyback plan after Tata Consultancy Services (TCS). The company has earlier said that it is also planning to distribute dividend by the end of this year or early next year.
In August 2020, the company's US arm signed an amended agreement to sell Majesco US to private equity firm Thoma Bravo. Majesco India holds a 74.07 percent stake in the US entity, Majesco US. Majesco US' board of directors unanimously approved the merger and recommended that shareholders approve the same.
(Edited by : Abhishek Jha)
First Published: IST