FDC Limited has rallied 9% to Rs 89.70 after the board approved buyback of equity shares at a maximum price of Rs 110 per share from the open market purchase.
“The board of directors has approved the buyback of fully paid-up equity shares of Re 1/- each of the company, up to a maximum offer size of Rs 50 crore and up to a maximum offer price of Rs 110/- per equity share, from the open market transactions through stock exchanges,” FDC said in a filing.
The maximum number of shares under the buyback will be 6.25 million equity shares and the minimum number of shares under the buyback will be 1.56 million equity shares, it added.
Meanwhile, the company has reported a 8% year-on-year drop in net profit at Rs 28.57 crore for the fourth quarter ended March 2012, due to higher raw material costs. Net sales too, declined marginally to Rs 155 crore from Rs 156 crore during the recently concluded quarter.
A combined 70,000 shares have changed hands on the counter in opening deals.