NIIT Announces Rs 335-Crore Share Buyback At Rs 125 Apiece
NIIT’s board has approved a proposal to buy back 2.68 crore shares, or 16 percent of its equity, at Rs 125 apiece.
NIIT Ltd. has announced a share buyback plan to reward shareholders.
The company’s board has approved a proposal to buy back 2.68 crore shares, or 16 percent of its equity, at Rs 125 apiece, according to an exchange filing by the talent developer. That’s a 27 percent premium to Friday’s closing share price. The buyback will be worth about Rs 335 crore.
This comes after NIIT Ltd. divested its entire shareholding in NIIT Technologies Ltd. to Baring Private Equity Asia Ltd.’s arm Hulst B.V. in April. As of March, the company had shareholders’ equity worth Rs 833 crore.
NIIT received Rs 2,020.4 crore from the divestment and it also set up a committee to explore ways to reward shareholders from the proceeds, said Join Managing Director and Co-Founder P Rajendran. “After giving a dividend of Rs 5 a share and keeping aside the monies required for taxation, expenses and the indemnity pool, the balance amount has to be deployed to reward the shareholders as well as growth capital for the future,” he told BloombergQuint in an interview.
On Saturday, NIIT Ltd. also announced its results for the quarter ended June.
- Net revenue declined 2 percent to Rs 210 crore.
- Ebitda rose 16 percent year-on-year to Rs 22 crore.
- Profit after tax at Rs 1,090 crore against Rs 17.9 crore a year ago. Higher profit came on the back of one-time income from the divestment of NIIT Ltd.’s holding in NIIT Technologies.
“Our Ebitda is moving up and that will be the trend,” Rajendran said.
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