JSPL tumbles as board approves buyback proposal

Jindal Steel and Power lost 7.48% to Rs 225.25 at 13:12 IST on BSE, on profit booking after the company's board of directors approved buyback of equity shares.

The announcement was made during market hours today, 30 August 2013.

Meanwhile, the S&P BSE Sensex was up 21.05 points or 0.11% at 18,422.09

On BSE, 7.49 lakh shares were traded in the counter as against average daily volume of 6.24 lakh shares in the past one quarter.

The stock hit a high of Rs 246.50 and a low of Rs 213.50 so far during the day. The stock had hit a 52-week high of Rs 473.90 on 20 December 2012. The stock had hit a 52-week low of Rs 181.55 on 2 August 2013.

The stock had outperformed the market over the past one month till 29 August 2013, surging 22.12% compared with the Sensex's 6.08% fall. The scrip, however, underperformed the market in past one quarter, sliding 18.9% as against Sensex's 8.67% fall.

The large-cap company has equity capital of Rs 93.48 crore. Face value per share is Re 1.

Shares of Jindal Steel and Power (JSPL) had gained 5.82% in two trading sessions to Rs 243.45 on 29 August 2013 from a recent low of Rs 230.05 on 27 August 2013, after the company announced after market hours on 27 August 2013 that its board of directors will meet on Friday, 30 August 2013, to consider a proposal for buyback of equity shares of the company.

JSPL's board of directors at its meeting held today, 30 August 2013, unanimously approved the buy-back of equity shares from its existing shareholders (other than the company's promoters, promoter group, persons in control and persons acting in concert), at a price not exceeding Rs 261 per share, up to an aggregate amount not exceeding Rs 1000 crore from the open market through the stock exchange(s), provided, inter alia, that such buy-back shall be equal to or less than 10% of the company's total paid-up equity capital and free reserves.

JSPL's consolidated net profit surged 28.3% to Rs 494.28 crore on 4.1% decline in net sales to Rs 4490.80 crore in Q1 June 2013 over Q1 June 2012.

JSPL is one of India's major steel producers with a significant presence in sectors like mining, power generation and infrastructure.

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