The NIIT board of directors has approved a buyback proposal through which the company will repurchase up to 9,875,000 equity shares amounting to Rs 237 crore. Investors are offered a price of Rs 240 for surrendering their shares.
The regulatory filing from the company reads, ‘the Board of Directors of the company at its meeting held on December 24, 2020, has inter-alia approved a proposal for buyback of up to 9,875,000 fully paid-up equity shares of the company…for an aggregate amount not exceeding Rs 2,370,000,000,”
Currently, the company is awaiting shareholders’ approval for the buyback, which will take place under the tender offer route. It is passing a resolution through a postal ballot seeking support.
On December 24, 2020, the company’s board of directors had given the nod to the proposal of buyback shares from existing shareholders.
Following the development, NIIT shares rallied in the market, rose 14.36 percent and hit the high of Rs 157.60 on BSE. It further climbed 18.65 percent and closed at 163.50 against the previous closing of Rs 137.80.
Earlier, NIIT shares gained 101 percent in one year before losing 21.14 percent at the beginning of 2021. The company reported a market capitalisation of Rs 2,327 crore on BSE.
The buyback will begin on April 12, until April 28, 2021.
Recently, Tata Consultancy Services and Wipro also had undertaken buyback activities. Tata’s massive buyback proposal of Rs 16,000 crore opened on December 18, 2020, and slated on January 1, 2021. Wipro also made a buyback offer of Rs 9,500 crore equity shares between December 29 and January 11, 2021.
Equity buyback is a process through which companies repurchase equity shares from existing shareholders, usually at a premium rate. Interested shareholders can surrender their shares and take out a profit under the buyback program.
NIIT is a small-cap skill and talent development company. It offers multi-disciplinary training solutions to corporations, institutions, and individuals in over forty countries.
NIIT shares rallied after the announcement in December 2020. Investors who have purchased shares during that period can expect a good valuation of their investment if they participate in the buyback.
Enjoy Zero Brokerage on Equity Delivery
Join our 1.75 Cr+ happy customers
Enjoy Zero Brokerage on