 "Mphasis gains 4% as board mulls share buyback proposal")
Shares of information technology (IT) company Mphasis is trading 4% higher at Rs 1,225 on the BSE in early morning trade after the company said that its board will consider a share buyback proposal on Tuesday, August 7, 2018.
The stock was trading close to its record high of Rs 1,237 recorded on July 25, during intra-day trade.
Mphasis on July 6 had announced that a meeting of board of directors of the Company is being scheduled on Tuesday, 7 August 2018, to consider and approve the audited financial results of the company and Group for the quarter ended 30 June 2018.
“The board would be considering a proposal for buy-back of the equity shares of the Company,” IT Company said on Thursday after market hours.
Last year, Mphasis had completed buyback of 17.4 million shares with a total outlay of Rs 11.03 billion.
Buyback is one way through which a company returns a part of the profit it has generated to shareholders. When a company buys back shares, its total number of outstanding shares reduces. For the same level of total earnings, if the number of outstanding shares declines, the company generates higher earnings per share (EPS).
Thus far in the calendar year 2018, Mphasis has outperformed the market by surging 68% as compared to 10% rise in the S&P BSE Sensex. A combined 92,953 equity shares changed hands on the counter on the BSE and NSE so far.
The stock was trading close to its record high of Rs 1,237 recorded on July 25, during intra-day trade.
Mphasis on July 6 had announced that a meeting of board of directors of the Company is being scheduled on Tuesday, 7 August 2018, to consider and approve the audited financial results of the company and Group for the quarter ended 30 June 2018.
“The board would be considering a proposal for buy-back of the equity shares of the Company,” IT Company said on Thursday after market hours.
Last year, Mphasis had completed buyback of 17.4 million shares with a total outlay of Rs 11.03 billion.
Buyback is one way through which a company returns a part of the profit it has generated to shareholders. When a company buys back shares, its total number of outstanding shares reduces. For the same level of total earnings, if the number of outstanding shares declines, the company generates higher earnings per share (EPS).
Thus far in the calendar year 2018, Mphasis has outperformed the market by surging 68% as compared to 10% rise in the S&P BSE Sensex. A combined 92,953 equity shares changed hands on the counter on the BSE and NSE so far.
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