Buyback best way to give returns to shareholders: Mastek
Explaining the rationale of this buy back Farid Kazani, Group CFO & Director Finance, Mastek told CNBC-TV18, the company is in comfortable cash flow position and feel that this is good way to deploy that cash.
November 06, 2012 / 14:08 IST
IT player Mastek will buy back 3.2 million equity shares of the company at a price not exceeding Rs 175 per equity share for an amount not exceeding Rs 36 crore.
Explaining the rationale of this buy back Farid Kazani, Group CFO & Director Finance, Mastek told CNBC-TV18, the company is in comfortable cash flow position and feel that this is good way to deploy that cash. "The moment we felt we are comfortable on cash flow position and the cash balance that we have attained in past one year, we thought this is the best way to give returns to the shareholder," he added. Further, he added that investors could expect dividend if the company’s business remains stable and they make good profit. Below is the edited transcript of Kazani’s interview with CNBC-TV18. Q: Can you take us through why you decided to do a buyback?A: We have been contemplating this for sometime. The moment we felt we are comfortable on cash flow position and the cash balance that we have attained in past one year, we thought this is the best way to give returns to the shareholder. This is an opportune time because we are looking at giving good returns to shareholders.Q: You did not consider a large dividend, did you?A: Dividend is definitely on the anvil if we do well in this year. If we end up with good profit and good cash flow for the year we may give dividend. Q: The 32 lakh shares that you have indicated, you are serious about buying the entire quantity?A: That is exactly why we have done that. We are serious about buying back the entire quantity.
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