eClerx Services Buyback 2022 vs Technocraft Industries Buyback 2022

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, inter-alia, for the following reasons:

1. The Buyback will help the Company to return surplus cash to its shareholders;
2. The Buyback would involve allocation of number of Equity Shares reserved for the small shareholders;
3. The Buyback may help in improving return on equity leading to long term increase in shareholders' value;
4. The Buyback gives an option to the shareholders holding Equity Shares of the Company, who can choose to participate and get cash in lieu of Equity Shares; and
5. The Buyback may lead to reduction in outstanding Equity Shares, improvement in earnings per Equity Share, and enhanced return on equity.