Majesco board gives nod to Rs 631 cr share buyback plan

Shares of the company closed marginally lower at Rs 847.05 on Thursday. On Wednesday, Majesco had reported a standalone net profit of Rs 2,510.84 crore while its revenue was at Rs 5.81 crore in the September 2020 quarter.

Cloud software solutions provider Majesco on Thursday said its board has approved a buyback plan of up to Rs 631.26 crore. The buyback will be done through the tender offer route, the company said.

"...the Board of directors of Majesco Limited at its meeting held on October 8, 2020, has inter-alia approved the proposal to buyback up to 74,70,540 fully paid equity shares of Rs 5 each of the company... for Rs 845 per equity share for an aggregate amount not exceeding Rs 631,26,06,300," Majesco said in a regulatory filing. The buyback plan is subject to the approval of the members using a special resolution, it added.

The public announcement setting out the process, timelines, and other statutory details will be published in due course, it said. Shares of the company closed marginally lower at Rs 847.05 on Thursday.

On Wednesday, Majesco had reported a standalone net profit of Rs 2,510.84 crore while its revenue was at Rs 5.81 crore in the September 2020 quarter. The standalone financials for the period ended September 30, 2020, reflected gain on account of stake sale in Majesco US of Rs 3,234.3 crore, a filing had said. Its consolidated net profit was at Rs 2,376.54 crore, while its revenue was at Rs 5.81 crore in the September 2020 quarter. The consolidated financials reflect the net profit after tax of the discontinued business - Majesco US of Rs 34.5 crore related to operations for the period until the date of divestment (September 21, 2020). Further, it reflects exceptional deal-related expenses incurred by Majesco US (including buyer related costs), the filing had said.