Shares of TeamLease Services ended 3.6 percent higher on Friday after the company announced a share buyback proposal, a week after reporting weak quarterly results.
The company on Friday announced that it will buyback not more than 3.27 lakh equity shares or 1.92 percent of the company's total equity. The buyback amount of Rs 3,050 per share is a premium of 35 percent to Thursday's closing price.
Record date for the buyback, which will be done through the tender offer route, will be determined later. The total amount to be utilised for the buyback would be Rs 100 crore.
The Board of TeamLease Services has formed a Buyback Committee, appointing the company’s Company Secretary, Alaka Chanda as the compliance officer of the buyback.
Edelweiss Financial Services Ltd has been chosen as the Manager to the Buyback.
Shares of TeamLease had fallen to a 52-week low late last month after a weak December quarter.
The company attributed a muted revenue growth to weaker festive demand in the December quarter compared to the September quarter and prior periods.
TeamLease said that its margins would be under pressure for the coming quarters as well given the soft demand, realisation pressure, and the NEEM (National Employability Enhancement Mission) impact.
Shares of TeamLease ended 3.6 percent higher at Rs 2,329.
(Edited by : Rukmani Krishna)
First Published: Feb 3, 2023 6:47 PM IST
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