Aarti Industries hits 52-week high on board nod for share buyback

The stock up 5% to Rs 740 after the company said board approved the buyback of shares at a price of Rs 800 per share via tender offer.

Aarti Industries hit a fresh 52-week high of Rs 740, up 5% on the BSE in intra-day trade, after the company said the board has approved buyback of shares at a price of Rs 800 per share via the tender offer route.

“The board of directors of the company at its meeting held on October 17, 2016 has approved the buyback up to 1.20 million equity shares representing up to 1.44% of the total equity of the company at a price of Rs 800 for an aggregate amount of up to Rs 96 crore on a proportionate basis through the “tender offer”,” Aarti Industries said in a BSE filing.

Members of the promoter and promoter group of the company have indicated their intention to participate in the proposed buyback, it added.

The company has fixed November 02, 2016 as the record date for the purpose of buyback of equity shares.

As of June 30, 2016 the promoters held 54.80% stake in Aarti Industries.  Individual shareholders held 27.11% holding, followed by mutual funds (12.06%) and foreign portfolio investors (3.39%), the shareholding pattern data shows.

In past one-month, the stock outperformed the market by surging 24% as compared to 3% decline in the S&P BSE Sensex.

At 09:46 am, the stock was up 4.5% at Rs 736 against 0.7% rise in the benchmark index. A combined 76,202 shares changed hands on the counter on the BSE and NSE.