eClerx Services Limited (NSEI:ECLERX) announces a share repurchase program. Under the offer, the company will repurchase up to 1,375,000 shares, representing 2.8% of its share capital for INR 3,850 million worth of its shares. The shares will be repurchased at a price not exceeding INR 2,800 per share.

The repurchases will be funded out of the free reserves and/or company?s current surplus and/or cash balances and/or current investments and/or cash available from internal resources of the company and/or other sources as permitted by the law. The purpose of the buyback is to return surplus cash to its shareholders, enhancing the overall return to the shareholders, improving return on equity due to reduction in the equity base, achieving an optimal capital structure and to provide an option to the shareholders to either participate in the buyback and get cash in lieu of their shares or not participate in the buyback and enjoy an increase in their percentage shareholding post the buyback, without additional investment. The share repurchase program is subject to approval of shareholders by way of a special resolution through a postal ballot.

The company has fixed July 4, 2024, as the record date for the offer. The program is valid till July 15, 2024. As of May 10, 2024, the company had 49,025,359 issued and outstanding shares.