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eClerx Services Limited Buyback Review, Offer Details, Price, Dates, Size & more

In this article, we will discuss about eClerx Services Limited Buyback offer, buyback price, buyback size, eClerx Services Buyback record date, company financial, buyback necessity and its impact on company.

eClerx Services Limited Buyback Details

Buyback TypeTender Offer
Buyback Opening DateMay 31, 2019
Buyback Closing DateJune 14, 2019
Buyback Offer AmountRs. 2,620,000,000/-
Buyback No. of Shares 17,46,666
Face ValueRs. 10
Date of Buyback ApprovalMarch 14, 2019
Date of Public AnnouncementApril 26, 2019
Buy Back PriceRs. 1,500/-
Buy Back Premium30.47%
Date of Board MeetingMarch 14, 2019

eClerx Services Buyback Opening and Closing Date

The starting and closing date of this buyback is May 31, 2019 to June 14, 2019.

eClerx Services Buyback Cash Offer

The Cash Offer to Buy-back up to 17,46,666 fully paid-up equity shares of the Company of face value of Rs. 10 each, representing 24.95% of the total number of equity shares.

eClerx Services Buyback Record Date

The decided record date is Friday, May 10, 2019.

eClerx Services Buyback Price

At a price of Rs. 1,500(Rupees One Thousand Five Hundred Only) per Equity Share.

eClerx Services Buyback Size

At a buyback price of Rs. 1,500/- payable in cash for an aggregate consideration not exceeding Rs. 2,620,000,000/- (Two Thousand Six Hundred Twenty Million Only).

eClerx Services Limited Buyback Acceptance Query

You can check for Buyback Acceptance query here. Just click on the given link and it will redirect you to buyback acceptance query page.


eClerx Services Limited Buyback Acceptance Ratio

Find profit & profit percentage based on various acceptance rate, The profit is calculated based on 1000 shares.

Acceptance RatioTotal Shares AcceptedBuyback PriceBuyback AmountProfitProfit%
20%200150030000011240011.98%
40%400150060000022480023.97%
60%600150090000033720035.95%
80%8001500120000044960047.93%
100%10001500150000056200059.91%

Profit is calculated from 30th May 2019 share price i.e. Rs.938 per share of eClerx Services Limited.

According to the above table, if a share owner 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.1500 per share & receive Rs.112400 as profit amount & 11.98% 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.1500 & receive a profit of Rs.337200 @ 35.95% profit percentage.


eClerx Services Limited Buyback Overview

eClerx Services Limited BuybackeClerx 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.


Company Finances – eClerx Services Limited

The salient financial information of the Company as extracted from the standalone audited financial statements for the last three years being March 31, 2018, March 31, 2017 and March 31, 2016 and from unaudited standalone financial results nine months’ period ended December 31, 2018, are as given below:

[In Rs. Millions]

Particulars9 Months 12 Months period ended March 31
(Audited)
December 31, 2018201820172016
Revenue from Operations8,471.1511,440.2111,620.2211,058.85
Other Income434.88438.27284.79389.30
Total Income8,906.0311,878.4811,905.0111,448.15
Total Expenses (excluding finance cost, depreciation & amortization)6,615.827,968.137,487.037,145.85
Finance Cost0000
Depreciation and amortization expenses182.75295.99364.07416.63
Profit before tax2,107.463,614.364,053.913,885.67
Provision for tax
(including Deferred Tax)
575.71833.17742.43937.17
Profit /(Loss) after tax1,531.752,781.193,311.482,948.50
Equity Share Capital386.94386.29397.84407.89
Other Equity11,920.2410,567.2010,595.449,277.56
Networth12,307.1810,953.4910,993.289,685.45
Total Debt (Excluding working capital loans)NANANANA

eClerx Services Limited Buyback Dates

Date of Board Meeting approving the BuybackMarch 14, 2019
Date of Public Announcement for BuybackApril 26, 2019
Date of publication of Public Announcement for BuybackApril 30, 2019
Record Date for determining the Buyback Entitlement and the names of Eligible
Shareholders
May 10, 2019
Buyback Opening dateMay 31, 2019
Buyback Closing dateJune 14, 2019
Last Date of verification of Tender Forms by the RegistrarJune 19, 2019
Last date of intimation regarding acceptance / non-acceptance of Tendered Equity
Shares to the BSE Limited by the Registrar
June 21, 2019
Last date of Settlement of Bids on the BSE LimitedJune 24, 2019
Last date of return of unaccepted Equity Shares by BSE LimitedJune 24, 2019
Last date of Extinguishment of Equity SharesJune 28, 2019

Details of Public Announcement

In accordance with Regulation 7(i) of the SEBI Buy-Back Regulations, the Company has issued a Public Announcement dated April 26, 2019 in relation to the Buy-Back which was published in the following newspapers on April 30, 2019, which is within 2 (Two) Working Days from the date of passing the special resolution by the Equity Shareholders approving Buy-Back through postal ballot, the results of which were declared on April 26, 2019.

PublicationLanguageEdition
Financial ExpressEnglishAll editions
JansattaHindiAll editions
Mumbai LakshadeepMarathiMumbai

Necessity of eClerx Services Limited Buyback

The Buy-Back would increase the shareholders’ value and would also help the Company in fulfilling the following objectives:

  • It will help the Company to return surplus cash to its Equity Shareholders holding Equity Shares broadly in proportion to their shareholding, thereby, enhancing the overall return to the Equity Shareholders;
  • The Buy-Back, which is being implemented through the Tender Offer as prescribed under the SEBI Buy-Back Regulations, would involve allocation of 15% of the outlay 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”;
  • It may help in improving return on equity due to reduction in the equity base, thereby leading to long term increase in shareholders’ value;
  • The Buy-Back will help in achieving an optimal capital structure.

It gives an option to the Eligible Shareholders of the Company, to either choose to participate and get cash in lieu of Equity Shares to be Accepted under the Buy-Back Offer or 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 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 response to the Buy-Back is to the extent of 100% (full Acceptance) from all the Equity Shareholders upto their Buy-Back Entitlement, the aggregate shareholding of the Promoter and Promoter Group, post the Buy-Back may increase to 50.76% from 50.51% prior to the Buy-Back, and the aggregate shareholding of the public in the Company post Buy-Back may decrease to 49.24% from 49.49% prior to the Buy-Back.

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.

Salient financial parameters consequent to the Buy-Back based on the latest audited standalone financial statements as of March 31, 2018, of the Company are as under:

Parameters (based on audited standalone financial statements for year ended March 31, 2018)Pre Buy-backPost Buy-back
(Assuming Full Acceptance)
Net worth (Rs in Millions)10,953.498,333.49
Return on Net worth (%)25.3933.37
Earnings Per Share (Rs)69.8773.07
Book Value per Share (Rs)283.55225.95
P/E as per the latest audited standalone financial statements17.2016.44
Total Debt / Equity RatioNANA

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:

  • A premium of 42.92% and 41.23% over the volume weighted average market price of the Equity Shares on BSE and on NSE, respectively, during the three months preceding March 7, 2019 (the date of intimation to the Stock Exchanges for the Board Meeting to consider the proposal of the Buy-Back),
  • A premium of 50.06% and 48.23% over the volume weighted average market price of the Equity Shares on BSE and on NSE, respectively, for two weeks preceding March 7, 2019 (the date of intimation to the Stock Exchanges for the Board Meeting to consider the proposal of the Buy-Back),
  • A premium of 32.24% and 32.43% over the closing prices on BSE and on NSE respectively as on April 26, 2019, the date of Buy-Back Committee meeting to determine final terms of the Buy-Back and
  • A premium of 30.47% and 30.90% over the closing prices on BSE and on NSE respectively as on March 14, 2019, the date of Board of Directors meeting to approve the Buy-Back Offer.

Source of Funds for the Buyback

The Buy-Back shall be made out of the its Securities Premium Account in the first instance and thereafter, if required, out of the Company’s free reserves and/or such other sources as may be permitted by applicable law based on the latest audited standalone financials of the Company for the financial year ended March 31, 2018 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, based on the latest audited standalone financial statement of the Company for the financial year ended March 31, 2018.

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.


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: [email protected];
Website: www.emkayglobal.com
SEBI Regn. No.: INM000011229
Validity Period: Permanent
CIN: L67120MH1995PLC084899

eClerx Services Limited – Registrar to the Buyback

KARVY FINTECH PRIVATE LIMITED
Contact Person: Mr. M. Murali Krishna
Karvy Selenium, Tower‐ B, Plot No 31 & 32, Gachibowli Financial
District, Nanakramguda, Hyderabad 500032, Telangana.
Tel. No.: +91 40 6716 2222; Fax No.: +91 40 2343 1551
Email id: [email protected]
Website: www.karvyfintech.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: [email protected]; Website: www.eclerx.com

 


eClerx Services Limited Buyback News

News 1 – Buyback PDF / Letter of Offer [Download]

News 2 – eClerx Services Ltd – Public Announcement


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