Shares of Matrimony.com traded 6 per cent higher at Rs 733 on the BSE at 09:46 AM in Thursday’s trade. The spike comes after the company announced that the board will consider share buyback proposal on May 12, 2022.
The stock of the leading online matrimony company opened 11 per cent higher at Rs 770 on the BSE. In comparison, the S&P BSE Sensex was up 0.87 per cent at 56,152 points. Earlier, the stock had hit a 52-week low of Rs 660.35 on March 28, 2022.
“A meeting of the board of directors of the company will be held on May 12, 2022, to consider the proposal for buyback of equity shares of the company, quantum and mode of buyback, appointment of intermediaries and other matters incidental thereto,” Matrimony.com said.
The board will also declare financial results for the quarter and year ended March 31, 2022 and recommend dividend, if any.
The primary objective of the share buyback programme is to arrest the fall in stock's value by reducing the supply, which will eventually push up the share price through a better price to earnings (P/E) multiple.
Despite today’s outperformance, the stock of Matrimony.com has underperformed market by falling 26 per cent in the past six months. In comparison, the S&P BSE Sensex was down 6.5 per cent during the same period. Meanwhile, in the past one year, Matrimony.com has dipped 23 per cent as against 15 per cent rally in the benchmark index.
Matrimony.com is a signature consumer internet conglomerate, managing marquee brands such as BharatMatrimony, CommunityMatrimony and EliteMatrimony. The company had made stock market debut on September 21, 2017. It issued shares at Rs 985 per share and the stock had hit a record high of Rs 1,242 on February 25, 2021.