Shares of Nucleus Software Exports surged 16 per cent to Rs 612 on the BSE in Wednesday’s intra-day trade after the company said its board will meet on Friday, 24 September, 2021 to consider a proposal for share buyback. The stock of information technology (IT) software products company had hit a 52-week high of Rs 765.35 on 02 July, 2021.
“A meeting of the board of directors of the company will be held on Friday, 24 September, 2021 inter-alia to consider the proposal for buyback of the fully paid-up equity shares of the company,” Nucleus Software Exports said in an exchange filing on Tuesday after market hours.
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.
Despite today’s surge, in past three months, Nucleus Software Exports has underperformed the market by gaining 0.50 per cent, as compared to 12 per cent rally in the S&P BSE Sensex.
The company is leading provider of lending and transaction banking solutions to the global financial services industry. For the April-June quarter (Q1FY22), Nucleus Software had posted 83 per cent year on year and 78 per cent quarter on quarter drop in its consolidated net profit at Rs 6 crore. Total Revenue on a consolidated basis stood at Rs 108.44 crore for Q1FY22 as against Rs 128.35 crore in Q1FY21.
At 09:40 am; the stock was up 11 per cent at Rs 590 on the BSE, as compared to 0.20 per cent decline in the S&P BSE Sensex. The trading volume at the counter also jumped significantly with a combined 480,000 equity shares changing hands on the NSE and BSE.
 "shares, growth, results, earnings, GDP, markets, stock, investment, shares, buybacks, investor, equity, BSE")