Nucleus Software Exports Announces Buyback Offer Of Nearly Rs 159 Crore

Nucleus Software Exports has announced a buyback offer of around Rs 159crore on Friday.

Nucleus Software Exports Announces Buyback Offer Of Nearly Rs 159 Crore

Nucleus Software "proposes to buy-back up to 22,67,400 equity shares of Rs 10 each."

New Delhi: Nucleus Software Exports has announced a buyback offer of around Rs 159 crore on Friday. The company in a notification to exchanges said, "The Board of Directors on September 24 approved the proposal for buyback of its shares from the equity shareholders on a proportionate basis through the tender offer route."

Under the offer, Nucleus Software "proposes to buy-back up to 22,67,400 equity shares of Rs 10 each, comprising of 7.81% of the total paid-up equity capital of the company, from the equity shareholders of the company, at a price of Rs 700 per equity share, for an aggregate amount not exceeding Rs 1,58,71,80,000."

It also said, "The maximum buyback size represents 24.90% and 24.01% of the aggregate of the total paid up equity capital and free reserves based on the audited standalone and consolidated financial statements, respectively, for last financial year ended on March 31, 2021."

The objective of a share buyback programme is to arrest the fall in the value of a stock by reducing the supply of the stock.

Nucleus Software is leading provider of lending and transaction banking solutions to the global financial services. In June quarter of 2021-22 (Q1 FY22), the company had posted 83% year-on-year (YoY) and 78% quarter-on-quarter (QoQ) drop in its consolidated net profit at Rs 6 crore.

The company's shares closed 2.80% higher at Rs 609 on BSE.