Majesco freezes at 5% upper circuit, hits record high on buyback plan

Shares of Majesco were locked in the upper circuit limit of 5 per cent at Rs 858.95, also its record high, on the BSE in the early morning deals on Tuesday after the company said it has scheduled a meeting on Thursday, October 8, 2020, to consider a buyback proposal.

The stock of the IT consulting and software company surpassed its previous high of Rs 846, touched on September 24, 2020. Till 09:21 AM, a combined 39,000 equity shares had changed hands and there were pending buy orders for around 140,000 shares on the BSE and NSE. In comparison, the S&P BSE Sensex was up 0.79 per cent at 39,280 points.

Majesco is the second IT firm to announce share buyback plan after sector giant Tata Consultancy Services (TCS) said earlier it will consider a buyback on Wednesday, October 7, 2020.

Earlier, on October 1, Majesco had informed the stock exchanges that a meeting of the board of directors of the company is scheduled to be held on Wednesday, October 7, 2020, to approve unaudited financial results for the quarter and half year ended September 30, 2020.

In August, 2020, the company’s US arm signed an amended agreement to sell Majesco US to private equity firm Thoma Bravo. Majesco India holds a 74.07 per cent stake in the US entity, Majesco US.

Majesco US' board of directors unanimously approved the merger and recommended that shareholders approve the same. Majesco India's board also approved the revised deal on August 8. The transaction is expected to be completed by the end of 2020. The company had said it intends to distribute entire proceeds via dividend or buyback as expeditiously as possible.