Cairn India falls after board approves share buyback
The stock was down 2% at Rs 319 in early morning deals on the BSE.
Cairn India is trading lower by 2% at Rs 319 on the Bombay Stock Exchange (BSE), after the company announced a buyback at a price not more than Rs 335 per share. The company will spend up to Rs 5,725 crore on the buyback.
"The amount notified to be spent on the proposed buyback is in line with our expectations. The company had a cash and equivalents of US$3bn as on September 30, 2013. With high operating cash flows, limited capex requirements, we believe buyback is positive for equity shareholders. We maintain a buy rating on the stock with a price target of Rs 380," an analyst at Angel Broking said in a note.
The stock opened at Rs 321 and hit a low of Rs 317 in trade today. A combined around 50,000 shares have changed hands on the counter in early morning deals on BSE and National Stock Exchange (NSE).
"The amount notified to be spent on the proposed buyback is in line with our expectations. The company had a cash and equivalents of US$3bn as on September 30, 2013. With high operating cash flows, limited capex requirements, we believe buyback is positive for equity shareholders. We maintain a buy rating on the stock with a price target of Rs 380," an analyst at Angel Broking said in a note.
The stock opened at Rs 321 and hit a low of Rs 317 in trade today. A combined around 50,000 shares have changed hands on the counter in early morning deals on BSE and National Stock Exchange (NSE).