HSIL spurts after board approves buyback of Rs 70 cr

HSIL jumped 5.88% to Rs 75.60 after the company's board approved a proposal to buyback shares worth up to Rs 70 crore at a maximum buyback price of Rs 105 per equity share.

At maximum buyback price and for maximum buyback offer size, the indicative maximum number of equity shares to be bought back would be 66,66,667 equity shares, which is 9.22% of the total number of equity shares of the company. The announcement was made after market hours yesterday, 21 September 2020.

As on 18 September 2020, the promoters held 53.91% in HSIL. Post buyback the promoters stake may increase to 59.38% (assuming the full acceptance of the maximum buyback offer size at the maximum buyback price).

The scrip hit a 52-week high at Rs 75.60 in opening deals today. The stock has risen 117.87% from its 52-week low of Rs 34.70 hit on 25 March 2020.

On a standalone basis, HSIL reported net loss of Rs 17.35 crore in Q1 June 2020 compared with net profit of Rs 14.34 crore in Q1 June 2019. Net sales dropped 42.7% to Rs 251.55 crore in Q1 June 2020 over Q1 June 2019.

HSIL offers sanitaryware, faucets and glass bottles. The company's segments include building products division and packaging products division.

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