Just Dial zooms 10% as board to consider share buyback proposal

The board of directors of the company will meet on Thursday, April 30, 2020 to consider and approve the proposal for buy-back of fully paid up equity shares of the Company.

Shares of Just Dial rallied 10 per cent to Rs 383 on the BSE on Tuesday after the company announced that it will consider share buyback proposal on Thursday.
 

“A meeting of the board of directors of Just Dial will be held on Thursday, April 30, 2020 to inter-alia consider and approve the proposal for buy-back of fully paid up equity shares of the company and matters necessary and incidental thereto,” Just Dial said in exchange filing on Monday after market hours. READ FILING HERE

The primary objective of a share buyback programme is to arrest the fall in the value of a stock by reducing the supply of the stock, which essentially pushes up the share price through a better price to earnings (P/E) multiple.

In the past six months, the stock of Just Dial has underperformed the market by falling 40 per cent, as compared to a 19 per cent decline in the S&P BSE Sensex. However, the stock has recovered 53 per cent from its 52-week low of Rs 250 touched on March 26, 2020 in the intra-day trade.

At 09:52 am, Just Dial was trading 9 per cent higher at Rs 379 on the BSE, as against a 0.02 per decline in the S&P BSE Sensex. A combined 2.3 million equity shares have changed hands on the counter on the NSE and BSE so far.