Buyback news boosts Mastek
Shares of Mastek surged to a 52-week high of Rs 419 on Friday, after the company announced a plan to buy back shares at a maximum of Rs 750 a share. The stock closed 13.2% higher on the BSE.
By TNN |
MUMBAI: Shares of Mastek surged to a 52-week high of Rs 419 on Friday, after the company announced a plan to buy back shares at a maximum of Rs 750 a share. The stock closed 13.2% higher on the BSE.
The buyback is expected to open in January after obtaining shareholder approval, Mastek chairman and managing director Sudhakar Ram told ET. It will be done through open market purchases in tranches over a period of time.
Mr Ram said the company had a strong order pipeline which was Rs 315 crore at the end of Q1. “Since our primary focus is in insurance solutions rather than banking or financial services, we don’t expect to be affected by any slowdown,” he added. The company gets about 67% of its revenues from UK and about 27% from North America; so, its exposure to risks of a potential US slowdown are limited.
The buyback is expected to open in January after obtaining shareholder approval, Mastek chairman and managing director Sudhakar Ram told ET. It will be done through open market purchases in tranches over a period of time.
Mr Ram said the company had a strong order pipeline which was Rs 315 crore at the end of Q1. “Since our primary focus is in insurance solutions rather than banking or financial services, we don’t expect to be affected by any slowdown,” he added. The company gets about 67% of its revenues from UK and about 27% from North America; so, its exposure to risks of a potential US slowdown are limited.
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