Tech Mahindra to buy back over Rs 1,950 crore shares

Mumbai: Tech Mahindra in first major corporate action after acquiring Satyam Computers announced Rs 1,956 crore buy back of shares at a price of Rs 950 per equity share.

The board of directors of Tech Mahindra fixed March 6 as the record date for the purpose of ascertaining the eligibility of shareholders to participate in the buyback of shares from the equity shareholders of the company.

Tech Mahindra said, “The board of directors of Tech Mahindra approved the proposal for buyback by the company of its own fully paid equity shares of Rs 5 each not exceeding 20,585,000 being 2.10 per cent of the total paid up capital of the company from the equity shareholders of the company as on March 6, 2019.”

Tech Mahindra shares rose sharply after the buyback announcement touching an intra-day high of Rs 840.10 on BSE and finally closed at Rs 820.40 with a gain of 1.07 per cent.

Tech Mahindra promoter and promoter group have 35.93 per cent shareholding in the company as on February 15, 2019, the company said.

Foreign institutional investors and foreign portfolio investors are the largest shareholders in Tech Mahindra holding 38.87 per cent stake as February 15.

Indian financial institution, banks and mutual funds together held 9.32 per cent stake in the company.

Indian public, corporates and others held 14.95 per cent stake in the company. Non-resident Indians held 0.98 per cent stake.

“The public announcement setting out the process, timelines and other statutory details will be published on February 25, 2019,” Tech Mahindra said.