Tech Mahindra turns ex-date for buyback; stock slips 2%

Shares of Tech Mahindra slipped 2.5 per cent at Rs 811 apiece on the National Stock Exchange (NSE) in early morning deal after the stock turned ex-date for the proposed buyback.

The information technology (IT) company has fixed Wednesday, March 6, 2019, as the record date to determine the shareholders eligible to participate in the first-ever buyback, shareholders, to whom the letter of offer and tender offer form will be delivered in relation to the buyback and entitlement of equity shareholders in the buyback.

Tech Mahindra will buy back 20.58 million shares at Rs 950 a share. The offer is through tender process on a proportionate basis. The buy-back size of Rs 1,956 crore is 9.2 per cent of Tech Mahindra’s net worth and around 29 per cent of cash and investments as of December 2018 end. Promoters had indicated their intentions to participate in the buyback.