Jagran Prakashan hits 52-week low as stock turns ex-date for buyback today

The stock hit a 52-week low of Rs 145, down 9% on the BSE in intra-day trade.

Shares of Jagran Prakashan (JPL) hit a 52-week low of Rs 145 per share, down 9% on the BSE in intra-day trade, after the stock of publishing company turned ex-date for buyback of equity shares of the company.

The board of directors of the company at its meeting held on April 27, 2018, had approved the buyback of up to 15 million equity shares representing 4.82% of the total equity capital of the Company, at a price of Rs 195 per share, for an aggregate amount of Rs 2,925 million.

The company has fixed June 15, 2018 as the 'Record Date' to determine the shareholders who would be eligible to participate in the buyback; shareholders to whom the letter of offer and tender offer form will be delivered in relation to the buyback; and the entitlement of equity shareholders in the buyback.

JPL had posted an 11% year on year decline in its consolidated net profit at Rs 3.11 billion for the financial year 2017-18 (FY18), while operating revenue grew 0.9% at Rs 23 billion over the FY17.

“Radio, Outdoor and Digital all three did remarkably well even financially and posted good growth in revenue during FY18. Radio also delivered better than expected margins. However, the main business of print reported lower revenues and lower profits for the reasons beyond our control, in-spite of satisfactory operating performance as well as cost efficiencies,” said Mahendra Mohan Gupta, chairman and managing director, JPL, while announcing results.

Thus far in the calendar year 2018, the stock dipped 19% as compared to 4.5% rise in the S&P BSE Sensex.

At 10:49 am; JPL, trading 7% lower at Rs 149, was the largest loser among the S&P BSE500 index. On comparison, the benchmark index was down 0.48% at 35,567 points. A combined 500,691 shares changed hands on the counter on the BSE and NSE so far.