Birlasoft has announced a $500 per share share repurchase. There are five things you should know.

  • May 25, 2022, 12:37 p.m.

Birlasoft buyback: IT major Birlasoft Limited has announced a buyback of shares not exceeding  ₹ 390 crore, or up to 7,800,000 fully paid equity shares of the company. The board of directors of the company approved the Birlasoft buyback 2022 proposal at a price of ₹500 per share. The Birlasoft board also approved that the buyback of shares would take place through a tender route.

Birlasoft Limited informed about the share buyback approval via exchange communication citing, "The Board of Directors of the Company, at its meeting concluded today, inter alia, has approved the buyback of up to 7,800,000 fully paid equity shares of Rs. 2/- each of the Company (Equity Shares) (being 2.79% of the total paid-up equity capital of the Company) at a price of Rs. 500/- (Rupees Five Hundred only) per equity share (Buyback Offer Price), for an aggregate amount not exceeding ₹3,900 million (hereinafter referred to as the Buyback Offer Size) (being less than 25% of the total paid-up equity capital and free reserves of the Company as on March 31, 2022, both on consolidated basis)., subject to the approval of the shareholders."

Birlasoft buyback: Here we list out 5 things that you should know

1] Share buyback price: The board of directors of Birlasoft announced a share buyback price of 500 per share.

2] Share buyback value: The IT company in formed Indian exchanges that share buyback won't exceed ₹390 crore, or up to 7,800,000 fully paid equity shares of the company.

3] Buyback route: The company has also made it clear that buyback would be done via tender route.

4] Acceptance ratio: According to market experts, Birlasoft share price today is ₹375 whereas the buyback is announced at ₹500 per share. However, due to heavy beating of the IT stock, this buyback may have a higher acceptance ratio as its 52-week high is ₹585 per share.

5] Birlasoft Q4 result: IT major has reported rise in consolidated net profit (QoQ) by 17 per cent and 3 per cent rise in revenue (QoQ). However, Birlasoft has reported 35 per cent YoY rise in revenue. It has reported rise in EBIDTA of 7 per cent on QoQ basis, whereas 15 per cent rise in EBIDTA on YoY basis.

Author : Rajdhani Delhi Representative

Rajdhani delhi representative

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