NIIT hits 52-week high after board approves Rs 237 crore buyback proposal

The stock hit a fresh 52-week high of Rs 209.90 today, rallied 21% in past four trading days after the company announced share buyback plan.

Shares of NIIT rose 5 per cent to hit a fresh 52-week high of Rs 209.90 on the BSE in intra-day trade on Monday after the company on Thursday said its board has approved an up to Rs 237 crore buyback proposal at Rs 240 per equity share.

The buyback price of Rs 240 per share is at a 20 per cent premium to Thursday's closing price.

The stock of information technology (IT) services company was trading higher for the fourth straight day, having gained 21 per cent during the period after the company on December 21 announced that its board will meet on December 24 to consider a proposal for buyback of equity shares of the company.

“The board of directors of the company at its meeting held on December 24, 2020, has inter-alia approved a proposal for buyback of up to 9.87 million equity shares of the company for an aggregate amount not exceeding Rs 237 crore,” NIIT said in a regulatory filing.

The buyback, which is proposed to be made under the tender offer route, is subject to shareholders' approval by passing a special resolution through postal ballot, it said.

As of December 18, the promoters held 34.27 per cent stake in NIIT. Foreign portfolio investors have 22.16 per cent holding, followed by individual shareholders (21.81 per cent), mutual funds (8.03 per cent) and corporate bodies (6.8 per cent), data as per the company’s pre-buyback shareholding pattern showed.

At 01:08 pm, NIIT was trading 4 per cent higher at Rs 208 on the BSE as compared to a 0.75 per cent gain in the S&P BSE Sensex. A combined 3.8 million equity shares changed hands on the counter on the NSE and BSE.