Home Business IT Stock Surges 14% As Board To Consider Issuance of Bonus Shares Next Week; Do you Own?

IT Stock Surges 14% As Board To Consider Issuance of Bonus Shares Next Week; Do you Own?

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IT Stock Surges 14% As Board To Consider Issuance of Bonus Shares Next Week; Do you Own?

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Shares of eClerx Services surged 14 per cent in Wednesday’s trade after the company announced that its board will consider a bonus issue proposal. The BPO and KPO firm announced that its board is slated to meet on Tuesday, August 9 to consider the proposal for the issuance of bonus shares of the company.

“This is to inform you that a Meeting of Board of Directors of the company will be held on Tuesday, August 9, 2022 inter-alia: 1. to approve and take on record the Un-audited Financial Results (Consolidated and Standalone) of the Company for the quarter ended June 30, 2022. 2. to consider the proposal for issuance of bonus equity shares of the company,” eClerx announced in an exchange filing on Tuesday.

Bonus shares are fully paid additional shares issued by a company to its existing shareholders free of cost and are issued in relation to the number of shares held by the company’s shareholders.

The board will also meet to approve and take on record the un-audited financial results of the company for the quarter ended June 30, 2022 (Q1FY23), eClerx Services said in an exchange filing on Tuesday after market hours.

Following the development, shares of Eclerx Services zoomed about 14 hours to Rs 2,505.35 on Wednesday, before giving up some gains to trade at Rs 2,356 at 10.25 am. According to the data, shares of eClerx Services have rallied about 25 per cent in the last one month, whereas the stock has been trading flat on a one-year basis.

eClerx is an Indian IT and consulting company that provides business process management, automation and analytics services to a number of Fortune 2000 enterprises, including some of the world’s leading financial services, communications, retail, fashion, media & entertainment, manufacturing, travel & leisure and technology companies.

Incorporated in 2000, eClerx employs more than 14000 people across Australia, Canada, Germany, India, Italy, Netherlands, Philippines, Singapore, Thailand, UK and the USA.

The company had acquired Personiv, an outsourcing provider with over 35+ years of experience with offices in the US, India, and the Philippines. The acquisition would leverage synergies in digital and customer experience services. It would add ~$32 million in annual revenues to eClerx, according to analysts at ICICI Securities.

Overall revenue mix has been inching towards offshoring as in the last four quarters, onshore revenue mix has come down from 23 per cent to 20 per cent, which is a tailwind to margin. The management does not expect a materially different mix, going forward; guided for healthy EBITDA margin band of 28-32 per cent, the brokerage firm had said in top picks of the calendar year 2022.

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