Star Cement surges 13% as board mulls share buyback

Shares of Star Cement rallied 13 per cent to Rs 132 on the BSE in the intra-day trade on Tuesday after the company announced its board will meet on Friday, June 21, to consider share buyback proposal.

“The meeting of the board of directors of the Company is scheduled on 21/06/2019, to consider and approve a proposal for buy-back of the Company's equity shares, constitution of buy- back committee and appointment of intermediaries in accordance with applicable provisions of laws,” Star Cement said in a regulatory filing.

In the past one year, the stock has underperformed the market by falling 5 per cent, as compared to a 10 per cent rise in the S&P BSE Sensex till Monday. However, in the past two months, it has outperformed the market by gaining 8 per cent, against a 0.5 per cent decline in the benchmark index till yesterday.

As of March 2019, the promoters held 67.99 per cent stake in Star Cement. Individual shareholders held 17.24 per cent holding, followed by mutual funds (8.7 per cent) and bodies corporate (3.58 per cent).