Sasken Communication Technologies today said it plans to buy back 41.57 lakh shares worth over Rs 108 crore.
The buy-back offer would be at the price of Rs 260 apiece.
"The company proposes to buy back up to 41,57,000 equity shares representing 19.48 per cent of the total paid-up equity share capital of the company as on March 31, 2015," it said in a filing to the BSE.
According to Sasken, buy-back is a more efficient form of distributing surplus cash to equity shareholders as compared to other alternatives such as giving interim dividend.
Funding for the buy-back offer would be met through current surplus, cash and internal accruals of the company.
"The buy-back size represents less than 25 per cent of the total paid-up equity capital and free reserves as per the audited accounts of the company for the financial year ended March 31, 2015, which stands at Rs 43,237.50 lakh," the filing said.
Sasken provides engineering R&D and IT services to clients in the communications & devices, retail, insurance and independent software space, as per its website.
Shares of the company rose more than one per cent to close at Rs 234.70 apiece on the BSE.
