Sasken Technologies gains 11% on share buyback proposal

The board of directors is scheduled to meet on April 23, 2019, to consider the proposal of buyback of equity shares of the company, quantum, and mode of buyback.

Sasken Technologies gained 11 per cent to Rs 729 in the intra-day trade on the BSE on Thursday after the IT services firm announced share buyback plan.

The company's board of directors will meet on April 23 to consider the proposal of buyback of equity shares of the company, quantum and mode of buyback, Sasken Technologies said in a BSE filing.

“The board will also consider the audited financial results of the company for the quarter and year ended March 31, 2019 and proposal for recommendation of final dividend,” the company said.

The primary objective of a share buyback programme is to arrest the fall in the value of a stock by reducing the supply of the stock, which essentially pushes up the share price through a better price to earnings (P/E) multiple.

The stock hit a 52-week low of Rs 571 on February 15. Thus far in 2019, Sasken Technoligies has underperformed the market by falling three per cent, as compared to a nine per cent rally in the S&P BSE Sensex.

At 10:42 am, the stock was trading eight per cent higher at Rs 707 on the BSE, against 0.17 per cent decline in the benchmark index. A combined 74,827 shares changed hands on the counter on the BSE and NSE so far.