Allcargo Logistics dips post board nod for share buyback

The board approved a share buyback at a price not exceeding Rs 142.50 per share through open market mechanism.

Allcargo Logistics has dipped 5% to Rs 130.65, after the board of logistics firm approved a share buyback proposal at a price not exceeding Rs 142.50 per share through open market mechanism.

“The board has unanimously approved the buy-back of equity shares of the company under the "Open Market" mechanism through the stock exchanges at a price not exceeding Rs 142.50 per equity share of Rs 2 each fully paid up,” Allcargo Logistics said in a filing.

The aggregate consideration payable for such buy-back shall be limited to Rs 75 crore. i.e. within the 10% of the paid up capital and free reserves of the company as at March 31, 2012, it added.

The stock has corrected almost 6% in past two trading days, after surging 15% in three trading days on announcement of board meeting for buyback of shares. A combined 37,678 shares have changed hands on the counter so far on both the exchanges.