Crompton Greaves has surged nearly 6% to Rs 94.70, extending its 14% rally in past three trading sessions, after the company announced the buyback of its equity shares at a maximum price of Rs 125 per share from the open market through stock exchanges.
The stock has rallied 27% since June 24, compared to 5.3% rise in benchmark Sensex after the company said its board will consider the buyback proposal.
The company said it will buyback equity shares up to an amount of Rs 266 crore, being 10% of the total paid-up equity capital plus free reserves of the company, as per the audited FY12 financials.
The buyback amount represents 7.5% of the company’s FY13 net worth. As per the new norms on buyback offers, the company has to complete the buyback within six months from the opening date and it will have to buy back shares worth at least 50% of the amount earmarked for the buyback.
Meanwhile, the counter has seen huge trading activity with a combined around 3 million shares have already changed hands till 1148 hours against an average 4.4 million shares that were traded daily in past two weeks on BSE and NSE.
The stock has rallied 27% since June 24, compared to 5.3% rise in benchmark Sensex after the company said its board will consider the buyback proposal.
The company said it will buyback equity shares up to an amount of Rs 266 crore, being 10% of the total paid-up equity capital plus free reserves of the company, as per the audited FY12 financials.
The buyback amount represents 7.5% of the company’s FY13 net worth. As per the new norms on buyback offers, the company has to complete the buyback within six months from the opening date and it will have to buy back shares worth at least 50% of the amount earmarked for the buyback.
Meanwhile, the counter has seen huge trading activity with a combined around 3 million shares have already changed hands till 1148 hours against an average 4.4 million shares that were traded daily in past two weeks on BSE and NSE.
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