Birlasoft to consider share buyback next week. 5 things to know

Market


Birlasoft share buyback: The Board of Directors of Birlasoft is going to consider share buyback next week when they will sit for their scheduled meeting on 23rd May 2022. The IT company management informed about the share buyback plan in exchange communication and said that outcome of the board meeting will be further shared with the Indian exchanges soon after the conclusion of the meeting.

Birlasoft informed about share buyback consideration citing, “In continuation to the intimation made by Birlasoft Limited (‘Company’) dated May 16, 2022, about the meeting of the Board of Directors of the Company being scheduled to be held on May 23, 2022 and in accordance with the Regulations 29(1)(b) and 29(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, it is hereby informed that, at the aforesaid meeting, the Board of Directors will also be considering a proposal of buyback of equity shares of the Company and the matters necessary and incidental thereto, in accordance with the applicable provisions under the Companies Act, 2013 (including the rules and regulations framed thereunder), the Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018, as amended, and other applicable laws (‘Buyback Proposal’). The outcome of the Board meeting will be communicated to the stock exchanges soon after conclusion of the Board meeting on May 23, 2022.”

As board of directors of Birlasoft Ltd will discuss share buyback in its meeting scheduled on 23rd May 2022, its shareholders are advised to keep an eye on the following 5 things in upcoming exchange communications of the IT company:

1] Share buyback price: Once board of directors of Birlasoft approved share buyback, it would be interesting to know at what price they are going to buy the stock.

2] Tender vs direct market buyback: One needs to remain vigilant whether the Birlasoft share buyback would be tender-based or the company would buy the stock from open market.

3] Amount of share buyback: The IT company would also share how much shares they are going to consider for buyback. More the number of share buyback, more chances of profit to shareholders.

4] Closure of window: Closure of window will also be an information that Birlasoft shareholders needs to remain vigilant about. This is expected to become public after announcement of Birlasoft share buyback ex-date and record date.

5] Acceptance ratio: Birlasoft shares have corrected to the tune of more than 30 per cent in 2022 and the stock is standing near to its one year low. So, acceptance ration of Birlasoft buyback is expected to remain on higher side.

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