eClerx hits record high on buyback plan, retreats

NEW DELHI: Shares of IT firm eClerx rose nearly 9 per cent in Tuesday’s trade after the company said its board had approved buyback of equity shares for an aggregate amount not exceeding Rs 234 crore at a price not exceeding Rs 2,200 a share. The company said the promoters and promoter group intended to participate in the proposed buyback.

Following the development, the stock climbed 8.70 per cent to hit a record high of Rs 1,775 on BSE. The stock, however, witnessed profit booking at a higher level. At 10 am, the scrip was trading 1 per cent higher at 1,649.20.

At maximum buyback price, the buyback translates into approximately 10.68 lakh equity shares, representing about 2.62 per cent of the total paidup equity share capital as of March 31, 2016.

The company posted a 37.58 per cent rise in June quarter net profit to Rs 91.45 crore from Rs Rs 66.47 crore in the corresponding quarter of last year. Sales for the quarter jumped 20.66 per cent to Rs 298.36 crore from Rs 247.28 crore in the year-ago quarter.