IT firm Mphasis today said its Board has approved a proposal to buyback shares worth up to Rs 988.27 crore.
The company also reported 38 per cent increase in its net profit to Rs 258.3 crore for the June quarter.
The company's Board has approved a proposal for buyback of equity shares from all existing shareholders at a maximum price of Rs 1,350 per equity share, Mphasis said in a BSE filing.
"The resultant shares to be bought back with the maximum price is 7,320,555 equity shares... The buyback offer size of Rs 9,882.75 million is 25 per cent of the total paid-up equity capital and free reserves of the company as per the audited financials as at June 30, 2018," it added.
The buyback, which will be subject to the approval of shareholders by way of a special resolution and other statutory approvals, will also see participation from the Promoter who have 52.36 per cent shareholding.
Besides, the Board has constituted a Buyback committee and appointed Subramanian Narayan as the Compliance Officer for the proposed buyback.
The public announcement setting out the process, timelines and other requisite details will be released in due course in accordance with Buyback Regulations, the filing said.
Last year, Mphasis had completed buyback of 17.4 million shares with a total outlay of Rs 11.03 billion.
IT companies have kept up the momentum on buybacks this year too. HCL Technologies has announced a Rs 40 billion buyback plan, involving up to 36.3 milion shares at a price of Rs 1,100 per equity share.
The largest software exporter TCS also announced a Rs 160 billion share buyback, second in as many years, as part of its long-term capital allocation policy of returning excess cash to the shareholders.
Meanwhile, Mphasis also announced its financial results for the quarter ended June 2018.
Mphasis saw its net profit attributable to shareholders growing 38 per cent to Rs 258.3 crore in the said quarter from Rs 187.19 crore in the year-ago period.
Revenue from operations increased 18.5 per cent to Rs 1,820.22 crore in the quarter under review as against Rs 1,535.97 crore in the same period last fiscal.
The company has bagged deal worth USD 153 million in total contract value in Direct International business.
"We have entered FY2019 with a strong pipeline and consecutive quarters of growth across key businesses. We are pleased with the execution of our strategic roadmap towards achieving '4Gs of Growth growth that is Consistent, Competitive, Responsible and Profitable," Mphasis CEO and Executive Director Nitin Rakesh said.
Mphasis' investments in next-generation technologies and approach to applying these consistently for clients is helping the company win in the market place, he added.
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