Just Dial surges on heavy volumes

The stock moved higher by 15% to Rs 509 on the NSE on back of heavy volumes.

Shares of Just Dial has moved higher by 15% to Rs 509 on the National Stock Exchange (NSE) on back of heavy volumes after the company announced schedule for the buyback of equity shares.

The trading volumes on the counter nearly doubled with a combined 6.53 million shares changed hands on the NSE and BSE till 01:18 PM.

Just Dial informed the exchanges that its buy-back offer of 1.06 million equity shares would open for subscription on February 25, and close on March 10.

Local search engine Just Dial said it will spend up to Rs 164.5 crore in buying back shares from shareholders at a price of Rs 1,550 per equity share.

The buyback shall be undertaken on a proportionate basis from the shareholders as of December 4, 2015 through a tender offer.

"The buyback is being undertaken by the company to return surplus funds to its shareholders, which are over and above its ordinary capital requirements and in excess of any current investment plans", Just Dial said in a public announcements.

As of December 31, 2015, the public shareholders held 47.53 million or 67.42% stake in Just Dial.

Meanwhile, the stock hit a lifetime low of Rs 378 on Friday, February 12, 2016. It more than halved from its 52-week high of Rs 1,455 touched on March 19, 2015 in intra-day trade.