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So far in 2017, the stock has underperformed the market by falling 4% as compared to 17% rise in the S&P BSE Sensex till Thursday.
In past nine months, the board of directors of more than two dozen companies has approved a share buyback proposal.
The primary objective of a share buyback 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).
At 9:24 am, the stock was up 12% at Rs 251 on BSE as compared to 0.34% rise in the S&P BSE Sensex. The trading volumes on the counter jumped multiple-fold with a combined 478,957 shares changed hands on the NSE and BSE so far.