GE Shipping gains after board approves buyback

Great Eastern Shipping Company rose 1.10% to Rs 238 at 14:44 IST on BSE after the company's board approved buyback of equity shares.

The company made the announcement during trading hours today, 8 August 2013.

Meanwhile, the S&P BSE Sensex was up 126.54 points, or 0.68%, to 18,791.42.

On BSE, 1.40 lakh shares were traded in the counter as against an average daily volume of 6,446 shares in the past one quarter.

The stock hit a high of Rs 247.90 and a low of Rs 234.60 so far during the day. The stock had hit a 52-week high of Rs 291.50 on 19 December 2012. The stock had hit a 52-week low of Rs 199.25 on 24 June 2013.

The stock had outperformed the market over the past one month till 7 August 2013, rising 10.96% compared with the Sensex's 4.26% fall. The scrip had also outperformed the market in past one quarter, rising 2.19% as against Sensex's 6.15% fall.

The mid-cap company has an equity capital of Rs 152.32 crore. Face value per share is Rs 10.

The board of Great Eastern Shipping Company (GE Shipping) approved buyback of fully paid equity shares at a maximum price of Rs 279 per share, which is 17.23% premium to the ruling market price.

The company said it has set aside an aggregate amount of Rs 279 crore for the buyback, which is 5.53% of the total paid-up equity capital plus free reserves as per the audited balance sheet of the company for the year ended 31 March 2013.

On a consolidated basis, GE Shipping's net profit rose 35.36% to Rs 244.98 crore on 8.75% decline in total income from operations (net) to Rs 736.42 crore in Q1 June 2013 over Q1 June 2012. The result was announced during trading hours today, 8 August 2013.

Great Eastern Shipping Company operates in two main businesses viz. shipping and offshore. The shipping business is involved in transportation of crude oil, petroleum products, gas and dry bulk commodities. The company's offshore business services to the oil companies in carrying out offshore exploration and production activities.

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