Shares of Matrimony.com surged 14 per cent to Rs 759.80 on the BSE in Friday’s intra-day trade after its board approved buyback at price of Rs 1,150 per share via tender offer. In the past one week, the stock has outperformed the market by gaining 2 per cent as against a 4 per cent decline in the S&P BSE Sensex.
At 09:24 am; Martrimony.com traded 9 per cent higher at Rs 728.90, as compared to 0.92 per cent rise in the benchmark index.
“The board of directors, subject to approval by the shareholders of the company, has recommended a buyback of equity shares not exceeding Rs 75 crore at an indicative maximum buyback price not exceeding Rs 1,150 per equity share through the "tender offer" route, on a proportionate basis,” Matrimony.com said in an exchange filing.
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.
The board also recommended a final dividend of 100 per cent (Rs 5 per equity share of par value of Rs 5 each), subject to the approval of the shareholders.
Meanwhile, the company posted 15.6 per cent year-on-year (YoY) jump in consolidated profit after tax at Rs 11.7 crore. Revenue grew 9.4 per cent YoY at Rs 111 crore.
Matrimony.com is a signature consumer internet conglomerate, managing marquee brands such as BharatMatrimony, CommunityMatrimony and EliteMatrimony.