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Indiabulls Real Estate surges 9% as board mulls share buyback

The stock surged 9% to Rs 202 in otherwise weak market after the company said its board will meet on Friday, May 18, 2018, to consider the proposal of buy-back of equity shares of the Company.

SI Reporter  |  Mumbai 

Indiabulls
Indiabulls

Shares of have surged 9% to Rs 202 per share on the in early morning trade in otherwise weak market after the Mumbai-based real estate developer said that its board will meet on Friday, May 18, 2018, to consider the proposal of buy-back of equity shares of the company.

“A meeting of the Board of Directors of the Company will be held on Friday, May 18, 2018, to consider, inter alia, the proposal of Buy-back of equity shares of the Company,” said in a filing on Tuesday after market hours.

The primary objective of a programme is to arrest the fall in the value of a stock by reducing the supply of the stock, which essentially pushes up the share price through a better P/E multiple. The other objective is to improve earnings per share (since the same dividend amount is now distributed among fewer shares).

In past three months, had underperformed the market by falling 18% as compared to 4% rise in the S&P Sensex till yesterday. In past one year, the stock was up 7% against 17% rally in the benchmark index.

At 10:33 am; Indiabulls Real Estate was up 8% at Rs 201, against 0.66% decline in the Sensex. A combined 8.61 million shares changed hands on the counter on the BSE and so far.


First Published: Wed, May 16 2018. 10:36 IST
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