eClerx Services surges 8% as board considers share buyback proposal

The stock surged 8 per cent to Rs 1,118 on the BSE in intra-day trade so far on Friday after the company announced to consider share buyback proposal in its board meet on Thursday, March 14, 2019.

eClerx Services surged 8 per cent to Rs 1,118 apiece on the BSE in intra-day trade so far on Friday after the company announced to consider share buyback proposal in its board meeting on Thursday, March 14, 2019.

The primary objective of a share buyback programme is to arrest the fall in the value of a stock by reducing the supply of the stock, which essentially pushes up the share price through a better P/E multiple.

In the past 10 months, the stock of knowledge and business process outsourcing services provider has underperformed the market by falling 23