Nava Bharat Ventures surges 15% as board to consider buy back proposal

The meeting of the Board of Directors is scheduled on Friday, February 26

Shares of Nava Bharat Ventures surged 15 per cent to Rs 67.30 on the BSE in the intra-day trade on Wednesday after the company announced that its board will consider share buyback proposal on Friday, February 26.

The firm, on Tuesday after market hours, informed the stock exchanges that the meeting of the board of directors will be held on February 26, 2021, to consider the proposal for buyback of equity shares of the Company.

At 09:50 am, the stock was trading 11 per cent higher at Rs 65.20, as compared to a 0.49 per cent rise in the S&P BSE Sensex. Trading volumes on the counter jumped multi-fold with a combined 3.5 million equity shares having changed hands on the NSE and BSE till the time of writing of this report.

A buyback, also known as a share repurchase, is when a company buys its own outstanding shares to reduce the number of shares available in the open market. A company buys back shares for a number of reasons, such as to increase the value of remaining shares available by reducing the supply, or to return surplus cash to shareholders.

In the past six months, the stock of Nava Bharat Ventures has underperformed the market by gaining 1 per cent, as compared to a 29 per cent rally in the S&P BSE Sensex. Over the past one year, the stock has recorded negative returns of 3 per cent, as against a 24 per cent rally in the benchmark index.

Nava Bharat Ventures is a diversified organisation with interests in power generation, ferro alloys, and coal mining.