29 June 2017, India:
The board of Mid-tier IT firm Mindtree has approved buyback of up to 2.5% of total fully paid-up equity shares in the market up to Rs 43.2 lakh shares at Rs. 625 per share, as reported by the company in a BSE filing. The buyback would be carried out via the tender offer route under the board approval route. Promoters of the company will have an option to participate in the buyback plan.
Founded in 1999, Mindtree delivers digital transformation and technology services from ideation to execution, enabling Global 2000 clients to outperform the competition. “Born digital,” Mindtree takes an agile, collaborative approach to creating customized solutions across the digital value chain. At the same time, the company’s deep expertise in infrastructure and applications management helps optimize IT into a strategic asset.
In March 2017, Mindtree chief executive Rostow Ravanan told ET that the company had set up a committee to evaluate a buyback and a decision would be taken in 3-6 months. Mindtree’s buyback decision comes after similar strategy by larger IT rivals.
Earlier in the month of April, Tata Consultancy Services was the first Indian IT firm to reward shareholders with share buyback plan of Rs 16,000 crore. Other IT firms including Cognizant, Infosys, HCL Technologies Limited, Wipro, Mphasis and Hexaware Technologies had also announced the share buybacks as per the report by India Infoline.