eClerx Services has successfully completed its share buyback program, purchasing all 625,000 equity shares at ₹4,800 per share for a total consideration of ₹3,000 crores. The IT services company announced the completion through a post-buyback public announcement, marking the successful execution of its strategic capital allocation initiative.

Buyback Execution Details

The company's buyback program demonstrated strong investor interest with significant oversubscription. The key execution parameters were:

Strong Market Response

The buyback received overwhelming response from shareholders across categories. KFin Technologies Limited, the registrar, processed 1,802 valid bids for 1,311,679 equity shares, representing approximately 2.10 times the maximum shares proposed for buyback.

Settlement and Capital Structure Impact

The settlement process was completed efficiently on January 2, 2026, with Indian Clearing Corporation Limited facilitating direct fund payouts to eligible shareholders. All accepted shares were transferred to the company's demat account, with unaccepted shares returned to shareholders through lien release.

Major Shareholder Participation

Several institutional investors participated significantly in the buyback. HDFC Mutual Fund schemes had the highest acceptance with 186,050 shares (29.77% of total buyback), followed by Bandhan Small Cap Fund with 125,096 shares (20.02%). Other notable participants included Ashoka Whiteoak ICAV, Mahindra Manulife Small Cap Fund, and ICICI Prudential Smallcap Index Fund.

The buyback completion represents 21.08% and 13.80% of the company's fully paid-up equity share capital and free reserves based on standalone and consolidated financial statements respectively. The extinguishment of the 625,000 accepted shares is currently in process and will be completed by January 13, 2026, in accordance with SEBI buyback regulations.

eClerx Services Limited , a prominent business process management company, has announced a significant share buyback proposal, demonstrating its commitment to enhancing shareholder value. The company's Board of Directors has approved a buyback of up to 666,666 equity shares, representing 1.40% of its total paid-up equity share capital, at a price of ₹4,500 per share through a tender offer route.

Buyback Details

The proposed buyback, valued at up to ₹3,000 million, represents 21.08% of the company's aggregate paid-up equity share capital and free reserves based on standalone financials as of March 31, 2023. Here are the key details of the buyback:

Premium Offer

The buyback price of ₹4,500 per share represents a premium over recent market prices:

• 7.71% premium over the one-month volume-weighted average price on BSE
• 7.70% premium over the one-month volume-weighted average price on NSE
• 11.28% premium over the two-week volume-weighted average price on both exchanges

Shareholder Approval and Timeline

The company will seek shareholder approval for the buyback through a postal ballot. Key dates include:

• Voting period: November 5, 2023, to December 4, 2023
• Results announcement: December 5, 2023

Promoter Participation

Notably, the promoters and promoter group members of eClerx Services Limited have expressed their intention not to participate in the buyback. This decision may potentially increase the acceptance ratio for other shareholders.

Financial Position

The company's financial position supports this buyback initiative. As of March 31, 2023, eClerx Services reported:

• Standalone paid-up equity share capital and free reserves: ₹14,228.94 million
• Consolidated paid-up equity share capital and free reserves: ₹21,737.52 million

The proposed buyback amount falls within the statutory limit of 25% of the total paid-up equity share capital and free reserves.

Rationale for Buyback

eClerx Services Limited stated that the buyback aims to:

1. Return surplus funds to shareholders
2. Enhance overall shareholder value
3. Improve return on equity
4. Optimize the company's capital structure

Conclusion

This share buyback proposal demonstrates eClerx Services Limited's confidence in its business prospects and commitment to delivering value to its shareholders. The premium offer price and the non-participation of promoters may make this buyback attractive to public shareholders. However, investors should carefully consider their own financial situations and objectives before deciding to participate in the buyback.

As the company awaits shareholder approval and regulatory clearances, market participants will be watching the developments surrounding this corporate action.