Majesco Buyback

Majesco Buyback
Majesco Buyback | Majesco Buyback 2020 | Upcoming Buyback | Upcoming Buyback 2021 | New Buyback | New Buyback 2021

Majesco is an insurance partner for strategic partners who rely on the transformation of digital business. They combine technology, expertise and leadership to help insurers innovate, innovate and connect to build the future of their business – and industry – with speed and scale.

Majesco was established as a U.S. Subsidiary. By international technology service provider Mastek in 1992. Known as insurtech, Majesco uses technology to develop, update and redesign the standard insurance model.

Majesco Ltd had previously announced the shareholders’ approval of the company’s shareholding in the company.

The Company has designated Thursday, November 12, 2020 as a Recording Day, with the aim of securing the right and names of eligible shareholders to participate in the restitution.

Shares of Majesco Ltd retained BSE trading for Rs. 918.45 compared to the previous closure of Rs. 920.3. The total number of shares sold during the day was 4554 in more than 333 trades.

The stock has hit a high intraday of Rs. 923.25 and low intraday by 907.1. Income during the day was Rs. 4164734.

Or simply, it sells software, consultation and other cloud-based services to the insurance industry.

The company went down to Mastek in 2014, consolidated its global business under one umbrella, called it Majesco and started trading with the BSE and NYSE. It currently employs more than 2,400 people and serves more than 200 customers.

An insurance platform, such as Majesco Digital 1st Insurance® is a portfolio of solutions designed to power that journey. Includes a new microservices platform to support products and business models in the much-needed world.

Majesco works with insurers, re-sponsors, brokers, MGAs and green spaces as well as startups in the insurance industry. They have more than 200 clients across P&C, L&A and Group Benefits transforming their businesses by modernizing, improving or creating new business models with Majesco solutions.

Majesco Buyback

Buy Back Offer Deal

Buyback Type:Tender Offer
Buyback Record Date:13 NOV 2020
Buyback Opening Date:27 NOV 2020
Buyback Closing Date:11 DEC 2020
Buyback Offer Amount:₹ 631.26 Cr
Date of Board Meeting approving the proposal:08 OCT 2020
Date of Public Announcement:08 OCT 2020
Buyback Offer Size:25%
Buyback Number of Shares:74,70,540
Price Type:Tender Offer
FV:5
Buyback Price:₹ 845 Per Equity Share

Details of Buyback

The board of directors of Majesco Limited (“Company”) at its meeting on October 8, 2020, among other things approved a proposal to return up to 74,70,540 fully paid shares of Rs. 5 / – per Company (“Equity Shares”) at a price of Rs. 845 / – per Equity share (“Buyback Provision Amount”), with a combined amount not exceeding Rs. 631,26,06,300 / – (less than 25% of the total amount paid and the Company’s free reserves as of September 30, 2020).

Salient financial parameters

Particulars(Cr)Mar-16Mar-17Mar-18Mar-19Mar-20
Sales7578268069881,040
Expenses752804784896929
Operating Profit5232292111
OPM %1%3%3%9%11%
Other Income98223442
Interest48542
Depreciation1817182034
Profit before tax-8621103117
Tax %195%-21%87%30%23%
Net Profit7565469
EPS in Rs2.992.172.2419.0724.09

Profit from the buyback on the bases of acceptance Ratio

The buyback price is less than the current market price of shares. So there is no arbitrage available.

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of Majesco Buyback 2020 in demat or physical form as on record date [Not announced] .
2. Once you have shares in demat, you can participate in the buyback process which is opening from [Not Announced], by selling your shares through your broker on NSE or BSE.
3. Then on [Not Announced]the payment will be given to you for accepted shares and unaccepted shares will be returned to your demat account.