eClerx Services Limited Buyback Review, Offer Details, Price, Dates, Size & more
Last Updated Date: Nov 16, 2022In this article, we will discuss eClerx Services Limited Buyback offer, buyback price, buyback size, eClerx Services Buyback record date, company financial, buyback necessity, and its impact on the company.
To track the real-time share price of this Buyback, click on this link – eClerx Services Share Price
eClerx Services Limited Buyback Details
| Buyback Type | Tender Offer |
| Buyback Opening Date | October 18, 2021 |
| Buyback Closing Date | November 01, 2021 |
| Buyback Offer Amount | Rs. 3,030 Million/- |
| Buyback No. of Shares | 1,063,157 |
| Face Value | Rs. 10 |
| Date of Buyback Approval | September 16, 2021 |
| Date of Public Announcement | September 17, 2021 |
| Buy Back Price | Rs. 2,850/- |
| Buy Back Premium | 62.33% |
| Date of Board Meeting | August 13, 2021 |
eClerx Services Buyback Opening and Closing Date
The starting and closing date of this buyback is October 18, 2021, to November 01, 2021.
eClerx Services Buyback Cash Offer
The Cash Offer to Buy-back up to 1,063,157 fully paid-up equity shares of the Company of the face value of Rs. 10 each, representing 24.98% of the total number of equity shares.
eClerx Services Buyback Record Date
The decided record date is September 30, 2021.
eClerx Services Buyback Price
At a price of Rs. 2,850(Rupees Two Thousand Eight Hundred and Fifty Only) per Equity Share.
eClerx Services Buyback Size
At a buyback price of Rs. 2,850/- payable in cash for an aggregate consideration not exceeding Rs. 3,030 Million/-
eClerx Services Limited Buyback Acceptance Query
You can check for the Buyback Acceptance query here. Just click on the given link and it will redirect you to the buyback acceptance query page.
eClerx Services Limited Buyback Acceptance Ratio
Find profit & profit percentage based on various acceptance rates, The profit is calculated based on 1000 shares.
| Acceptance Ratio | Total Shares Accepted | Buyback Price | Buyback Amount | Profit | Profit% |
| 20% | 200 | 2,850 | 570000 | 99000 | 4.20% |
| 40% | 400 | 2,850 | 1140000 | 198000 | 8.41% |
| 60% | 600 | 2,850 | 1710000 | 297000 | 12.61% |
| 80% | 800 | 2,850 | 2280000 | 396000 | 16.82% |
| 100% | 1000 | 2,850 | 2850000 | 495000 | 21.02% |
Profit is calculated from 20th Sep 2021 share price i.e. Rs.2,355 per share of eClerx Services Limited.
According to the above table, if a shareowner applies for 1000 shares of eClerx Services limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.2,850 per share & receive Rs.99000 as profit amount & 4.20% profit percentage on selling these 200 shares back to the company.
Similarly, if the owner gets 60% acceptance of share from the company, the owner will sell 600 shares @ Rs.2,850 & receive a profit of Rs.297000 @ 12.61% profit percentage.
eClerx Services Limited Buyback Overview
eClerx Services Limited (“eClerx”) provides critical business operations services to over fifty global Fortune 500 clients, including some of the world’s leading companies across financial services, cable & telecom, retail, fashion, media & entertainment, manufacturing, travel & leisure, software, and high-tech.
Incorporated in 2000, eClerx is one of India’s leading process management and data analytics companies and is today traded on the Stock Exchanges. eClerx employs 9,500+ people across its global sites in the US, UK, India, Italy, Germany, Singapore, Thailand.
eClerx Customer Operations comprise of services offerings to clients for customer interaction monitoring mystery shopping, avoidable truck rolls, dispatch services reverse logistics, advanced chat services, advanced technical support, sales support, automation, and AI, business insights and analytics and platforms tools under product basket of Contact Quality Monitoring & Insights, Advanced Technical Operations, Digital Care Services, and Analytics & Automation.
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Company Finances – eClerx Services Limited
The salient financial information of the Company as extracted from the unaudited standalone financial results three months’ period ended June 30, 2021 and standalone audited financial statements for the last three financial years being March 31, 2021, March 31, 2020 and March 31, 2019, are as given below:
[In Rs. Millions]
| Particulars | 3 Months period ended (Un-audited) |
12 Months period ended March 31 (Audited) |
||
| June 30, 2021 | 2021 | 2020 | 2019 | |
| Revenue from Operations | 3,437.13 | 11,974.01 | 11,201.67 | 11,398.18 |
| Other Income | 96.10 | 393.84 | 540.01 | 558.25 |
| Total Income | 3,533.23 | 12,367.85 | 11,741.68 | 11,956.43 |
| Total Expenses (excluding finance cost, depreciation & amortization) | 2,275.54 | 8,439.50 | 8,797.55 | 8,851.24 |
| Finance Cost | 41.99 | 183.62 | 176.62 | – |
| Depreciation and amortization expenses | 112.14 | 500.04 | 445.93 | 261.55 |
| Profit before tax | 1,103.56 | 3,244.69 | 1,833.18 | 2,843.64 |
| Provision for tax (including Deferred Tax) |
281.62 | 855.65 | 597.47 | 747.51 |
| Profit /(Loss) after tax | 821.94 | 2,389.04 | 1,235.71 | 2,096.13 |
| Equity Share Capital | 348.90 | 348.90 | 369.83 | 387.11 |
| Other Equity | 12,946.40 | 12,187.91 | 10,743.24 | 12,664.92 |
| Networth | 13,295.30 | 12,536.81 | 11,113.07 | 13,052.03 |
| Total Debt (Excluding working capital loans) | – | – | – | – |
eClerx Services Limited Buyback Dates
| Date of Board Meeting approving the Buyback | August 13, 2021 |
| Date of Public Announcement for Buyback | September 17, 2021 |
| Date of publication of Public Announcement for Buyback | September 18, 2021 |
| Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders |
September 30, 2021 |
| Buyback Opening date | October 18, 2021 |
| Buyback Closing date | November 01, 2021 |
| Last Date of verification of Tender Forms by the Registrar | November 02, 2021 |
| Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the Registrar |
November 08, 2021 |
| Last date of Settlement of Bids on the BSE Limited | November 09, 2021 |
| Last date of return of unaccepted Equity Shares by BSE Limited | November 09, 2021 |
| Last date of Extinguishment of Equity Shares | November 12, 2021 |
Details of Public Announcement
In accordance with Regulation 7(i) of the SEBI Buy Back Regulations, the Company has issued a Public Announcement dated September 17, 2021 in relation to the Buy Back, which is published in the following newspapers on Saturday, September 18, 2021, which is within 2 (Two) Working Days from the date of declaration of results of passing the special resolution by the Equity Shareholders approving the Buy Back through postal ballot, i.e. Thursday, September 16, 2021.
| Publication | Language | Edition |
| Business Standard | English | All editions |
| Business Standard | Hindi | All editions |
| Navshakti | Marathi | Mumbai |
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Necessity of eClerx Services Limited Buyback
The Buy-Back is being proposed by the Company to return surplus funds to the Eligible Shareholders, which are over and above its ordinary capital requirements and in excess of any current investment plans, in an expedient, efficient, and cost effective manner. The Buy-Back would increase the shareholder’s value and would also help the company in fulfilling the following objectives:
- The Buy-Back will help the Company to return surplus cash to its shareholders holding Equity Shares broadly in proportion to their shareholding, thereby, enhancing the overall return to the shareholders;
- The Buy-Back, which is being implemented through the tender offer as prescribed under the SEBI Buy Back Regulations, would involve the allocation of 15% of the number of Equity Shares proposed to be bought back to Small Shareholders. The Company believes that this reservation of 15% for Small Shareholders would benefit a large number of public shareholders, who would get classified as “Small Shareholder”;
- The Buy-Back may help in improving return on equity due to reduction in the equity base, thereby leading to a long term increase in shareholder value;
- The Buy-Back will help in achieving an optimal capital structure. The Buy-Back gives an option to the shareholders holding Equity Shares of the Company, to either (i) choose to participate and get cash instead of Equity Shares to be accepted under the Buy-Back Offer or (ii) choose to not participate and enjoy a resultant increase in their percentage shareholding, post the Buy-Back Offer, without additional investment
Impact of eClerx Services Limited Buyback on the Company
The Buy Back shall not result in a change in control or otherwise affect the existing management structure of the Company.
Assuming full acceptance oftheBuy Back, the debt-equity ratio of the company postBuy Back shall be compliant within the permissible limit of 2:1 under the Companies Act. In compliance with Regulation 24 (i) (b) of SEBI Buy Back Regulations, the Company shall not issue any Equity Shares or other equity securities (including by way of bonus) till the date of Closure of the Buy Back.
The Company shall not raise further capital for a period of 1 (One) year from the Closure of the Buy Back except in discharge of its subsisting obligations. The Buy Back is not expected to impact growth opportunities of the Company.
Salient financial parameters consequent to the Buy Back based on the latest audited standalone and consolidated financial statements as of March 31, 2021, of the Company are as under:
| Parameters (based on audited standalone financial statements for the year ended March 31, 2021) | Pre Buy-back | Post-Buy-back (Assuming Full Acceptance) |
| Net worth (Rs in Millions) | 12,536.81 | 9,506.80 |
| Return on Net worth (%) | 19.06 | 25.13 |
| Earnings Per Share (Rs) | 67.29 | 70.63 |
| Book Value per Share (Rs) | 359.33 | 281.05 |
| P/E as per the latest audited standalone financial statements | 16.39 | 15.62 |
| Total Debt / Equity Ratio | 0.00 | 0.00 |
Basis of Calculating eClerx Services Buyback Price
The Buy-Back Price has been arrived at after considering various factors, including, but not limited to:
- The trends in the volume-weighted average prices of the Equity Shares of the Company, traded on the BSE and NSE where the Equity Shares are listed,
- The net worth of the Company,
- Price-earnings ratio,
- The impact on other financial parameters and
- The possible impact of Buy-Back on the earnings per share.
More on eClerx Services Buyback Price Calculation
The Buy-Back Price represents:
- The Buy Back Price represents a premium of 62.33% and 62.71% over the volume weighted average market price of the Equity Shares on BSE and NSE respectively, during the three months period preceding August 6, 2021 (the date of intimation to the Stock Exchanges for the Board Meeting to consider the proposal of the Buy Back), and premium of 31.20% and 30.30% over the volume weighted average market price of the Equity Shares on BSE and NSE respectively.
- For two weeks preceding August 6, 2021 (the date of intimation to the Stock Exchanges for the Board Meeting to consider the proposal of the Buy Back).The Buy Back Price represents a premium of 17.58% and 18.23% over the closing prices on BSE and NSE respectively as on September 17, 2021, the date of Buy Back Committee meeting to determine final terms of the Buy Back and premium of 31.19% and 31.31% over the closing prices on BSE and NSE respectively as on August 13, 2021, the date of Board of Directors meeting to approve the Buy Back Offer.
Know more about other Buybacks and their Registrar details
Source of Funds for the Buyback
Assuming full Acceptance, the funds that would be utilized by the Company for the purpose of the Buy Back would be Rs 3,030 Millions (Rupees Three Thousand and Thirty Millions only) excluding Transaction Costs.
The Buy Back shall be made out of the free reserves and/or such other sources as may be permitted by applicable law based on the latest standalone and consolidated audited financials of the Company for the financial year ended March 31, 2021 and that the payments shall be made 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 Company shall transfer a sum equal to the nominal value of the Equity Shares bought back through the Buy Back to the capital redemption reserve account and the details of such transfer shall be disclosed in its subsequent audited standalone financial statement and Annual Report(s).
The funds for the Buy Back will be sourced from internal accruals of the Company. The Company does not intend to raise any debt for the explicit purposes of the Buy Back. Thus, borrowed funds will not be used for the Buy Back. However, if required, the Company may borrow funds in the ordinary course of its business.
This Buy Back is not likely to cause any material impact on the earnings of the Company, except to the extent of reduction in the 17 amount available for investment, which the Company could have otherwise deployed towards generating investment income.
eClerx Services Limited – Manager to the Buyback
| EMKAY GLOBAL FINANCIAL SERVICES LIMITED Contact Person: Mr. Deepak Yadav / Mr. Chirag Dave 7th Floor, The Ruby, Senapati Bapat Marg, Dadar -West, Mumbai-400028, Maharashtra. Tel. No.: +91 22 66121212; Fax No.: +91 22 66121355 Email id: eclerx.buyback@emkayglobal.com; Website: www.emkayglobal.com SEBI Regn. No.: INM000011229 Validity Period: Permanent CIN: L67120MH1995PLC084899 |
eClerx Services Limited – Registrar to the Buyback
|
KFIN TECHNOLOGIES PRIVATE LIMITED
Contact Person: Mr. M Murali Krishna Regd. Off.: Selenium Tower B, Plot 31-32, Financial District, Nanakramguda, Serilingampally Mandal, Hyderabad – 500 032, Telangana Tel.: + 91-40-67162222 Fax: + 91-40-23431551 Toll-Free No: 18003094001 Email: eclerx.buyback@kfintech.com Website: www.kfintech.com SEBI Regn. No.: INR000000221 Validity Period: Permanent CIN: U72400TG2017PTC117649 |
eClerx Services Limited Contact Details
| Company Contact Details |
| eClerx Services Limited Registered Office and Correspondence Address: Sonawala Building, 1st Floor, 29 Bank Street, Fort, Mumbai – 400 023. Tel. No.: +91 22 6614 8301; Fax: +91 22 6614 8655 Corporate Identification Number (CIN): L72200MH2000PLC125319 Contact Person: Mr. Pratik Bhanushali, Company Secretary and Compliance Officer Tel. No.: +91 22 6614 8301; Fax: +91 22 6614 8655; E‐mail: investor@eclerx.com; Website: www.eclerx.com |
eClerx Services Limited Buyback News
News 1 – Buyback PDF / Letter of Offer [Download]
News 2 – eClerx Services Ltd – Public Announcement
FAQs of eClerx Services Buyback
What is the eClerx Services Buyback Period?
eClerx Services Buyback Period is briefly the time interval starting from the date of declaration of results of the postal ballot through remote e-voting i.e. September 16, 2021. The period ends on the date of payment of consideration to Eligible Shareholders who participated in the Buyback, i.e. November 01, 2021.
What type of buyback is eClerx Services Buyback?
This company has chosen the route of Tender offer to repurchase the shares from the eligible shareholders. The tender offer route is one of the Two Routes generally chosen by the companies, i.e. Tender Offer and Open Market Through Stock Exchanges.
What is the eClerx Services Buyback Offer?
eClerx Services Buyback Offer refers to the number of shares the company plans to buy back from the eligible shareholders. Herein, the company proposes to buy back 1,063,157 Fully paid up Equity shares, adhering to the buyback price.
When eClerx Services Buyback offer will start?
As per the released schedule, the eClerx Services Buyback offer will start on October 18, 2021. This is the opening date from when the Buyback will open for all shareholders. You will find the updated records of eClerx Services Buyback at all times, we ensure you have access to the right data.
When is the closing date of eClerx Services Buyback?
For ease in access to the dates and related aspects, we have segregated the closing date of eClerx Services Buyback. The buyback would stay open from October 18, 2021 and would close on November 01, 2021. The closing date is the last day on which the Buyback shall be open for the shareholders.
What is the offer price for eClerx Services Buyback?
The amount at which the shares are taken back by the company is referred to as the eClerx Services Buyback offer price. Herein, each and every fully Paid-up equity share is priced at Rs. 2,850, the price paid to each eligible shareholder.
What is the record date for the eClerx Services Buyback offer?
The record date of eClerx Services Buyback is September 30, 2021. The record date is generally the day when eligible shareholders are declared. Furthermore, complying with Buyback regulations, a letter of offer and Tender form is sent to the eligible shareholders.
What is the issue size of eClerx Services Buyback?
eClerx Services Buyback Size is Rs. 3,030 Million and is the total worth of Equity Shares the company plans on taking back. This amount is obtained from the total number of equity shares, multiplied by the Buyback price.
What is the necessity for eClerx Services Buyback?
The objective of the eClerx Services Buyback is to enhance the total return made by equity shareholders. Through buyback, the company will distribute the surplus cash to shareholders as per their holding proportion. A buyback may help in improving return on equity due to a reduction in the equity base, thereby leading to a long-term increase in shareholders’ value. The Buy-Back will help in achieving an optimal capital structure.
Who is the Registrar of eClerx Services Buyback offer?
The designated registrar of eClerx Services Buyback is KFIN TECHNOLOGIES PRIVATE LIMITED. You can find all the details related to the registrar in this report and contact them if you have any queries. You can check the details of the registrar, contact person, email address, and more.
Who is the Manager of the eClerx Services Buyback offer?
Manager to the eClerx Services Buyback is EMKAY GLOBAL FINANCIAL SERVICES LIMITED. The manager ensures that the company following up buyback strictly adheres to and is in conformity with the provisions of the Companies Act and Buyback Regulations.
How to check the eClerx Services buyback acceptance ratio?
Acceptance ratio is the proportion of shares the company accepts, to the final number of shares tendered. It refers to how much the company would buy back and how profitable it would be for you. You can also check how much profit (%) you will earn. Click on the link and check on the website page.
Where to find eClerx Services Buyback Dates / Events?
You can check the table for the list of events, as designed for the buyback. This article is your one and final destination to check all the eClerx Services Buyback information. You will encounter a section exclusively set to record the dates, in this article, referred to as eClerx Services Buyback Dates.
What can be the Impact of eClerx Services Buyback on the Company?
The Buy-Back is not likely to cause any material impact on the profitability or earnings of the Company except to the extent of reduction in the amount available for investment, which the Company could have otherwise deployed towards generating investment income. Assuming full acceptance of the Buy-Back, the debt-equity ratio of the Company post-Buy-Back shall be compliant within the permissible limit of 2:1 under the Companies Act.
Where to find complete details on eClerx Services Buyback?
As mentioned already, this page would give you every single detail about this buyback. Also, you find the link to download the Draft / Letter of Offer. Each and every section is vividly and carefully placed, giving you insights into all major as well as minor aspects of the ratio. The article is also inclusive of all the links.
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