eClerx Services Buyback 2022 vs Indian Energy Exchange Buyback

The Buy Back is being proposed by the company for fulfilling the following objectives:

1. The Buy Back will help the Company to return surplus cash to its shareholders holding Equity Shares broadly in proportion to their shareholding, thereby, enhancing the overall return to the shareholders.
2. The Buy Back may help in improving return on equity due to reduction in the equity base, thereby leading to long term increase in shareholder value.
3. The Buy Back will help in achieving an optimal capital structure.

The Buyback is being undertaken for the following reasons:

1. The Buyback gives the Company an opportunity to distribute surplus cash to its shareholders.
2. The buyback may help in improving return on equity and other financial ratios, by a reduction in the equity base, thereby leading to a long-term increase in shareholders' value.
3. The buyback gives an option to the existing equity shareholders to participate in the Buyback and receive cash in lieu of equity shares.