Mastek jumps after board OKs buyback

Mastek jumped 5.53% to Rs 210 at 9:16 IST on BSE after the company said its board approved buyback of shares.

The company made the announcement after market hours on Wednesday, 8 January 2014.

Meanwhile, the BSE Sensex was down 1.43 points, or 0.01%, to 20,727.95.

On BSE, so far 1.17 lakh shares were traded in the counter, compared with an average volume of 75,727 shares in the past one quarter.

The stock hit a high of Rs 211 and a low of Rs 204.40 so far during the day. The stock hit a 52-week high of Rs 207.90 on 8 January 2014. The stock hit a 52-week low of Rs 103 on 2 August 2013.

The stock had outperformed the market over the past one month till 8 January 2014, rising 43.48% compared with the Sensex's 1.27% fall. The scrip had also outperformed the market in past one quarter, rising 30.92% as against Sensex's 3.73% rise.

The small-cap company has an equity capital of Rs 12.32 crore. Face value per share is Rs 5.

Mastek said its board approved buyback of maximum of 32 lakh equity shares and minimum of 9.50 lakh equity shares from the open market at a price not exceeding Rs 250 per equity share for an aggregate amount not exceeding Rs 54.50 crore. The buyback offer size represents 14.92% of the aggregate of the company's paid up equity capital and free reserves as on 31 March 2013, the company said in a statement.

Mastek's consolidated net profit surged 112.27% to Rs 15.05 crore on 7.85% growth in net sales to Rs 233.71 crore in Q2 September 2013 over Q1 June 2013.

Mastek is a leading IT player with global operations providing enterprise solutions to insurance, government, and financial services organizations worldwide.

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