Buyback buoys India Infoline

STOCK IN THE NEWS

The India Infoline stock appreciated by 31 per cent from Rs 38.54 to Rs 50.50 last week after the company started buying back its equity shares from December 18.

On Friday, the stock surged 16.9 per cent and surpassed its maximum buyback price of Rs 43.20 a share set by the company. The combined volume on the counter more than doubled with 36.6 million equity shares changing hands last week on BSE and NSE compared with 9.37 million shares traded in the previous week.

The company’s board of directors has proposed to buy back equity shares up to 10 per cent of the company’s paid-up equity capital and free reserves from the open market, subject to a maximum price of Rs 43.20 a share and a maximum outlay of Rs 98.91 crore. The company has total reserves of Rs 1,654 crore, including a share premium amount of Rs 1,438 crore at the end of March 2008. The buyback offer began from December 18 and will close on November 28, 2009.

 

The non-promoters hold 66.59 per cent stake in the company, of which foreign institutional investors (FIIs) hold 29.08 per cent, while 10.36 per cent stake is held by foreign companies. Individual shareholders own 11.73 per cent stake, mutual funds, including UTI, have 5.72 per cent holding in the company, while the remaining 9.7 per cent stake is owned by non-resident Indians, overseas corporate bodies and others.