Shares of NIIT were locked in 20 percent upper circuit of Rs 165.35 per share on the BSE on Thursday after the firm said its buyback offer would open on April 12, 2021.

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On December 24, 2020, the company’s board had approved an up to Rs 237 crore (around 98 lakh shares) buyback proposal at Rs 240 per equity share. The closing date for the buyback offer has been set for April 28.

In a filing to BSE, the company said it has received final observations from Sebi on the draft letter of offer.

"In accordance with the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018, the company will dispatch the Letter of Offer for the Buyback to eligible shareholders, appearing on the record date of February 24, 2021, on or before April 5, 2021," the company said in a BSE filing.

The buyback is a corporate action in which a company buys back its shares from the existing shareholders usually at a price higher than the market price. When a company buys back shares, the number of shares outstanding in the market reduces.

As of December 2020, the promoters held a 34.27 percent stake in the firm, FPIs have 23.80 percent stake, retail investors 22.37 percent, mutual funds 8.01 percent and others 8.2 percent.