GE Shipping gains after board OKs buyback

Great Eastern Shipping Company was up 1.25% to Rs 283.95 at 10:35 IST on the BSE after the company said its board approved buyback of shares.

Meanwhile, the S&P BSE Sensex was up 162.94 points, or 0.41 % to 39,877.14.

On the BSE, 2522 shares were traded in the counter so far compared with average daily volumes of 6840 shares in the past two weeks. The stock had hit a high of Rs 290 and a low of Rs 280.75 so far during the day. It hit a 52-week high of Rs 353 on 19 December 2018 and a 52-week low of Rs 240.05 on 12 February 2019.

Great Eastern Shipping Company (GE Shipping) said its board approved a proposal to buyback fully paid-up equity shares of the company for an amount not exceeding Rs 100 crore. The maximum buyback price is Rs 306 per share.

At the maximum buyback price and for the maximum buyback size, the indicative maximum number of equity shares bought back would be 32.67 lakh equity shares, which would be approximately 2.17% of the total paid-up equity shares of the company as at 31 March 2019.

The company said it will utilise at least 50% of the amount earmarked as the maximum buy back size for the buyback i.e. Rs 50 crore (minimum buyback size). Based on the minimum buy back size and maximum buy back price, the company would purchase indicative minimum number of 16.33 equity shares.

GE Shipping reported a net profit of Rs 148.47 crore in Q4 March 2019 compared with net loss of Rs 419.10 crore in Q4 March 2018. Net sales rose 28.3% to Rs 965.56 crore in Q4 March 2019 over Q4 March 2018.

GE Shipping has two main businesses: shipping and offshore. The shipping business is involved in transportation of crude oil, petroleum products, gas and dry bulk commodities. The offshore business services to the oil companies in carrying out offshore exploration and production activities, through its subsidiary Greatship (India).

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