iGate Buyback at Rs 450 / share

iGate surprised us this quarter with the announcement to buy back and de-list from Indian stock exchanges by December 2007. The tendering process would be through a reverse book building route with the average price prevailing prior to November 13th, 2007 as a base price. Our analsyt recommends investors to tender their shares with a price of Rs 450 which discounts our FY09E EPS of Rs 30 by 15x. The buyback price would be decided based on the price tendered by the highest number of shareholders.