The buyback launched by India’s largest tech services company by market cap saw immense participation as it saw an over subscription of more than 7.5 times on Wednesday, which was the last day of the buyback.
Investors tendered in 30.12 crore shares against acceptable 4 crore in the Rs 18,000 crore buyback which was launched on 9th March. The strong interest was on account of the fact that the buyback price i.e. Rs 4,500 was significantly over the current market price.
For a reserved category of small shareholders, the ratio of buyback was 1 in for every 7 shares held on record date. For the general category, the ratio was 1 for every 108 shares held on the record date. This is the company’s fourth buyback. The company had conducted a buyback in January 2021 worth about Rs 16,000 crores.
The buyback is an extremely lucrative offer for any investor as the current share price of the stock is around Rs 3,700, while the company is offering Rs 4,500 for the same. The share closed on Wednesday at Rs 3,712.40. Today the share opened low but managed to climb up to a level of Rs 3,750 per share.
Highlight by Aman Agarwal.