R Systems hits 52-week high on share buyback plan; zooms 106% in six months

The stock surged 18 per cent to Rs 56.40, also its 52-week high on the BSE in intra-day trade after the company said its board will consider share buyback proposal on Tuesday, January 15, 2019.

Shares of R Systems International have surged 18 per cent to Rs 56.40 apiece, also their 52-week high on the BSE in intra-day trade, after the company said its board will consider share buyback proposal on Tuesday, January 15, 2019. The stock of information technology (IT) and IT-enabled services provider was trading at its highest level since April 24, 2017.

In the past six months, R Systems International has zoomed 106 per cent from the level of Rs 27.40 on July 9, 2018, as compared to a 1 per cent rise in the S&P BSE Sensex.

The company on Tuesday after market hours said that a meeting of the board of directors of the company is scheduled to be held on Tuesday, January 15, 2019, to inter alia consider and approve the proposal for buyback of equity shares of the company.
 

Earlier in 2016, R Systems International had bought back shares at a price of Rs 65 per share through a tender offer.

R Systems maintains a strong financial position with a healthy cash balance Rs 190 crore to grow organic and inorganic as of September 30, 2018.

Most of the IT companies including Tata Consultancy Services (TCS), Infosys, Wipro, HCL Technologies and Mindtree have all unveiled share buybacks in the past few years, as most are sitting on large amounts of cash with no commensurate investment plans.

At 10:52 am; R Systems International was trading 13 per cent higher at Rs 54 on the BSE. In comparison, the S&P BSE Sensex was up 0.52 per cent at 36,169 points. The trading volumes on the counter jumped multiple-fold with a combined 370,014 equity shares changed hands on the BSE and NSE so far.