Triveni Engineering surges 10% as board approves share buyback proposal

The board has approved a buyback of 10 million shares at a price of Rs 100 per share via the tender offer route

Shares of Triveni Engineering & Industries surged 10 per cent to Rs 78.04, also its fresh 52-week high on the BSE, after its board approved a buyback of 10 million shares at a price of Rs 100 per share via tender offer.

“The board approved the proposal for buyback of equity shares of the Company, not exceeding 10 million equity shares (representing 3.88 per cent of the paid up equity share capital of the Company as at March 31, 2019), at a price of Rs 100 per share for an aggregate amount not exceeding Rs 100 crore,” Triveni Engineering said in a regulatory filing.

The board has fixed June 19, 2019, as the record date for determining the entitlement and the names of the eligible shareholders / beneficial owners to whom the letter of offer will be sent and who will be eligible to participate in the buyback, it added.

Thus far in the calendar year 2019 (CY19), Triveni Engineering has rallied 62 per cent, as compared to 11 per cent rise in the S&P BSE Sensex. The company posted operating profit of Rs 121 crore in March quarter (Q4FY19), as against a loss of Rs 108 crore. It had reported a net profit of Rs 80 crore against loss of Rs 103 crore in previous year quarter.

At 03:22 pm, the stock was trading 6 per cent higher at Rs 75.95 on the BSE, as compared to 1.5 per cent rise in the S&P BSE Sensex. The trading volume jumped three-fold, with a combined 5.16 million shares changing hands on the BSE and NSE.