Zensar Technologies plans Rs40-crore share buy-back

Zensar Technologies Ltd proposes to buy back up to 16.01 per cent of its aggregate paid-up equity share capital and free reserves for a total consideration of Rs40 crore.

Zensar Technologies said it would buy back 2,424,000 of its fully paid-up equity shares of the face value Rs10 each, at a price of Rs165 per share (payable in cash), for an aggregate amount of around Rs39.996 crore, from the existing shareholders of the company, through a tender offer.

The announcement is being made in accordance with the relevant provisions of the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 1998, as amended, the company said in a release.

The board of Zensar Technologies has amended the relevant provisions of the memorandum of association and the articles of association of the company and approved the buy-back, "subject to such other approvals, permissions and sanctions as may be necessary".

Under the tender offer route, the promoters have the option to participate in the buy-back and the promoter group companies have informed the company regarding their intention to participate in the buy-back.

Assuming that the entire amount of Rs399,960,000 is utilised for the buy-back and the number of shares tendered by promoter group in the buyback is 2,424,000, the promoter holding in the company would be in the range of 47.82 per cent and 57.02 per cent depending on the extent of shares tendered by public shareholders, the release said.

The buy-back will open on 16 November and close on 26 November 2009. Last date of withdrawal is 25 November 2009 and the buyback will close on 30 November 2009.

Last date of verification is 11 December 2009 while the last date of intimation regarding acceptance or non-acceptance and despatch of consideration and share certificates or demat instruction is 14 December 2009.