Paramatrix’s ₹59.9 Million Buyback: A Golden Opportunity for Shareholders

Image Source: The Tribune

Paramatrix Technologies Limited, a leading software and IT solutions provider, has announced a strategic share buyback worth up to ₹59.9 million via the tender offer route, signaling strong confidence in its growth trajectory and commitment to enhancing shareholder returns.

Key Highlights:

Buyback Details: The board has approved the repurchase of up to 4,60,800 fully paid-up equity shares at ₹130 per share, totaling an outlay of ₹5.99 crore (₹59.9 million), excluding transaction costs. This represents 5.27% of the company’s issued and paid-up equity share capital as of March 31, 2024.
Tender Offer Route: The buyback will be conducted through a tender offer, allowing eligible shareholders as of the record date to participate. Notably, the company’s promoters have voluntarily opted out, reinforcing their long-term faith in Paramatrix’s future.
Capital Structure Optimization: The buyback will be funded from free reserves and securities premium, amounting to 23.09% of the paid-up equity share capital and 20.22% of free reserves, as per FY24 financials.
Growth and Performance: Paramatrix reported FY24 total income of ₹28.6 crore, EBITDA of ₹5.65 crore, and net profit of ₹4.13 crore. The company’s stock has surged 21% in the past week and 41% over the month, reflecting strong investor sentiment.
Leadership Commentary: Founder and CEO Mukesh Thumar stated the buyback underscores confidence in Paramatrix’s fundamentals and long-term vision, with a continued focus on innovation and value creation.
Industry Standing: Paramatrix is recognized for its enterprise software, digital transformation solutions, and proprietary products across finance, healthcare, and education sectors.