United Phosphorus soars as buyback offer gains momentum

United Phosphorus is trading higher by 4.4% at Rs 123, extending its yesterday’s around 4% rally after the agrochemicals company said that it has bought 745,558 shares between June 22 and June 25 through open market purchase under buyback offer.

“As of June 25, 2012, the company has purchased 4.10 million equity shares at a total consideration of Rs 46.36 crore, under buyback offer,” Citigroup Global Markets India Private Limited, the manager to the buy-back said in a filing on behalf of the United Phosphorus.

The company proposed to buy-back of 19.2 million equity shares for up to Rs 288 crore from the open market, at a price not exceeding Rs 150 per share.

The stock opened at Rs 120 and hit a high of Rs 124 on the National Stock Exchange. The counter has seen almost four-fold surge in trading volumes, with a combined 2.83 million shares have changed hands so far, against an average around 790,000 shares that were traded daily in past two weeks.