HSIL hits 52-week high in a weak market after board approves buyback plan

The stock rallied 9% to Rs 78 in the intra-day trade after its board approved buyback of shares at Rs 105 per share via open market

Shares of HSIL hit a fresh 52-week high of Rs 78, up 9 per cent on the BSE, in the early morning deals on Tuesday after its board approved buyback of shares at Rs 105 per share for an aggregate amount of Rs 70 crore via open market.

"At the maximum buyback price and for maximum buyback offer size, the indicative maximum number of equity shares to be bought back would be 6.67 million equity shares which are 9.22 per cent of the total number of equity shares of the Company," HSIL said in exchange filing. READ HERE

If the equity shares are bought back at a price below the maximum buyback price, the actual number of equity shares to be bought back could exceed the maximum buyback shares, but will always be subject to the maximum buyback offer size, it added.

At 09:48 am, HSIL was trading 3 per cent higher at Rs 73.70, as compared to 1.25 per cent decline in the S&P BSE Sensex. In the past eight trading days, the stock has rallied 29 per cent, as against 3.3 per cent decline in the benchmark index. Trading volumes on the counter nearly doubled with a combined 2.3 million shares changing hands on the NSE and BSE.

HSIL, engaged in containers & packaging business, is one of the leaders in glass, PET and caps and closures business. With the growing demand of the pharmaceutical sector and the rise of online businesses in the retail and food and beverage sector, packaging is receiving renewed attention from all sectors.

The company expects business uncertainty to prevail in the markets at least up to H1FY2020-21, led by the impact of the Covid-19 pandemic. Businesses will start recovering and gaining pace from Q3-Q4 FY2020-21, as the management hope the fear of the contagion to fade away with proper management and advances in medicine.