• Home
  • Terms and Conditions
  • Privacy Policy
  • Copyrights & DMCA
  • Cookie Policy
  • Contact Us
Tuesday, March 21, 2023
Daw Rimiz
No Result
View All Result
  • Login
  • Home
  • Business
    • Technology
    • Market
    • Gold
    • Stock
    • Money
    • Travel
  • Food
    • Dessert
    • Drinks
    • Fast food
    • Recipe
  • Health
    • Fitness
    • Diet
    • Exercise
    • Sports
  • Lifestyle
    • Fashion
    • Music
    • Kids
  • Services
    • Errand Services
    • Customer Service
    • Care Services
    • Cleaning Services
    • Online Services
    • Office Services
    • Home Services
    • Transport Service
    • Writing Service
  • Pages
    • Terms and Conditions
    • Privacy Policy
    • Digital Millennium Copyright Act Notice
    • Cookie Policy
  • Contact Us
  • Home
  • Business
    • Technology
    • Market
    • Gold
    • Stock
    • Money
    • Travel
  • Food
    • Dessert
    • Drinks
    • Fast food
    • Recipe
  • Health
    • Fitness
    • Diet
    • Exercise
    • Sports
  • Lifestyle
    • Fashion
    • Music
    • Kids
  • Services
    • Errand Services
    • Customer Service
    • Care Services
    • Cleaning Services
    • Online Services
    • Office Services
    • Home Services
    • Transport Service
    • Writing Service
  • Pages
    • Terms and Conditions
    • Privacy Policy
    • Digital Millennium Copyright Act Notice
    • Cookie Policy
  • Contact Us
No Result
View All Result
DawRimiz
No Result
View All Result
Home Services

eClerx Services buyback: Here’s what a retail investor’s strategy should be

Donna Gilbert by Donna Gilbert
February 17, 2023
in Services
0
eClerx Services buyback: Here’s what a retail investor’s strategy should be
Article Summary show
We advise traders who wants to participate in the buyback to purchase 150 shares at Rs 1,134
READ ALSO
Leading Home Cleaning Service in New York City Launches in Hoboken
Janitorial Cleaning Services Market 2018 Global Industry Size, Demand, Growth Analysis, Share, Revenue, Manufacturers and Forecast 2025

We advise traders who wants to participate in the buyback to purchase 150 shares at Rs 1,134

eClerx Services buyback: Here's what a retail investor's strategy should be 1Manali Bhatia

Moneycontrol Contributor

READ ALSO

Leading Home Cleaning Service in New York City Launches in Hoboken

Janitorial Cleaning Services Market 2018 Global Industry Size, Demand, Growth Analysis, Share, Revenue, Manufacturers and Forecast 2025

eClerx Services has approved a buyback of 16,37,500 fully paid-up equity shares of face value Rs 10 each representing up to 4.24 percent of the total number of equity shares. The buyback price is fixed at Rs 1,600 per equity share, a 41 percent premium to its March 20 closing price of Rs 1,134 a share. The total buyback amount is Rs 262 crore, and the record date for the same is yet to be announced.

Buyback strategy

We have estimated the entitlement ratio to be 40-42 percent. However, the real acceptance ratio should be 30-40 percent higher as many shareholders do not take part in the buyback. We have estimated the acceptance ratio to be around 55-60 percent. Earlier too, the company had initiated a buyback twice with a reasonable acceptance ratio. Moreover, this buyback looks attractive as it is available at a 41 percent premium. The maximum tenure is estimated at 3-4 months.

We advise traders who want to participate in the buyback to purchase 150 shares at Rs 1,134 in the open market and offer them in the tender offer. Do note that the shareholding value should be less than Rs 2 lakh as on the record date to qualify for this buyback.

 

As per SEBI regulations, 15 percent of the offer size will be reserved for retail shareholders (holding shares worth less than Rs 2 lakh). Therefore, Rs 39.30 crore (15 percent of Rs 262 crore) is set for Retail Investors.

Expected returns and conclusion

The upside in eClerx is expected to be quite high, though the probability of alpha returns is expected. The company’s performance is in line with our estimates and has a strong order book. The estimated acceptance ratio as per our calculations turns out to be a reasonable 55 percent, which makes the buyback attractive.

Even if the stock trade sideways after the buyback, holders may gain up to 35,000-37,000, which translated to an expected absolute return of around 20 percent (estimated annualized return of 60 percent). A 20 percent movement on either side may provide a total return of 12-30 percent (estimated annualized return 36-90 percent). With downside expectations low, investors may opt for the buyback, and the remaining quantity (not been accepted in the repurchase) may be sold in the open market.

Related Posts

Leading Home Cleaning Service in New York City Launches in Hoboken
Cleaning Services

Leading Home Cleaning Service in New York City Launches in Hoboken

March 11, 2023
Janitorial Cleaning Services Market 2018 Global Industry Size, Demand, Growth Analysis, Share, Revenue, Manufacturers and Forecast 2025
Cleaning Services

Janitorial Cleaning Services Market 2018 Global Industry Size, Demand, Growth Analysis, Share, Revenue, Manufacturers and Forecast 2025

March 11, 2023
Although very strict on home cleaning, Romanians wouldn’t pay for professional service
Cleaning Services

Although very strict on home cleaning, Romanians wouldn’t pay for professional service

March 11, 2023
Tank Cleaning Service Market: Strategic SWOT Analysis with Leading business players National Tank Services, Clean Harbors, Tradebe Refinery Services & more
Cleaning Services

Tank Cleaning Service Market: Strategic SWOT Analysis with Leading business players National Tank Services, Clean Harbors, Tradebe Refinery Services & more

March 11, 2023
Global Aircraft Cleaning Services Market to Register a Stout Growth by 2025-end
Cleaning Services

Global Aircraft Cleaning Services Market to Register a Stout Growth by 2025-end

March 11, 2023
Cleaning Services Software Growth Market Trends Analysis By Top Key Players
Cleaning Services

Cleaning Services Software Growth Market Trends Analysis By Top Key Players

March 11, 2023
Next Post
For The First Time, Airtel Beats Jio In Mobile Broadband Growth; BSNL’s VoLTE Services Begin

For The First Time, Airtel Beats Jio In Mobile Broadband Growth; BSNL’s VoLTE Services Begin

No Result
View All Result

Categories

  • Business
  • Care Services
  • Cleaning Services
  • Customer Service
  • Dessert
  • Diet
  • Drinks
  • Errand Services
  • Exercise
  • Fashion
  • Fast food
  • Fitness
  • Food
  • Gold
  • Health
  • Home Services
  • Kids
  • Lifestyle
  • Market
  • Money
  • Music
  • Office Services
  • Online Services
  • Recipe
  • Services
  • Sports
  • Stock
  • Technology
  • Transport Service
  • Travel
  • Writing Service

Recent Posts

  • A Chinese professor explains what air pollution does to your health
  • Varadkar urges facets in health dispute to return to Labour Court
  • What the $sixty three Billion AbbVie Allergan Deal Says About the Drug Industry: Brainstorm Health
  • Too tons cleanliness no longer horrific for fitness, record on hygiene says
  • Medicalising everyday life doesn’t help anybody’s intellectual fitness
  • Home
  • Terms and Conditions
  • Privacy Policy
  • Copyrights & DMCA
  • Cookie Policy
  • Contact Us

© 2021-2023 Dawrimiz All Rights Reserved Dawrimiz.

No Result
View All Result
  • Home
  • Business
    • Technology
    • Market
    • Gold
    • Stock
    • Money
    • Travel
  • Food
    • Dessert
    • Drinks
    • Fast food
    • Recipe
  • Health
    • Fitness
    • Diet
    • Exercise
    • Sports
  • Lifestyle
    • Fashion
    • Music
    • Kids
  • Services
    • Errand Services
    • Customer Service
    • Care Services
    • Cleaning Services
    • Online Services
    • Office Services
    • Home Services
    • Transport Service
    • Writing Service
  • Pages
    • Terms and Conditions
    • Privacy Policy
    • Digital Millennium Copyright Act Notice
    • Cookie Policy
  • Contact Us

© 2021-2023 Dawrimiz All Rights Reserved Dawrimiz.

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In