Friday, February 23, 2024
Google search engine
HomeNewsIEX falls 2% as board approves Rs 98 crore share buyback via...

IEX falls 2% as board approves Rs 98 crore share buyback via open market

[ad_1]

Shares of (IEX) dipped 2 per cent to Rs 146.80 on the BSE in an otherwise firm market after the company announced its board’s approval for a share buyback proposal. In comparison, the S&P BSE Sensex was up 0.32 per cent at 62,496 at 11:07 am.


The buyback will be done at a price not exceeding Rs 200 per share and not exceeding Rs 98 crore through the open market.


The buyback would be done from the shareholders of the company other than the promoters, the promoters group and person in control of the company. At the maximum buyback size and maximum buyback price, the indicative number of shares to be bought back would be 4.9 million equity shares, representing 0.55 per cent of the total equity capital of the company.


In the last week, has rallied 9 per cent ahead of its scheduled board meeting for the share buyback plan. In comparison, the S&P BSE Sensex was up 1 per cent during this time. The stock had hit a 52-week low of Rs 133.95 on October 25, 2022.


ICICI Securities said it views this as a positive development with the buyback being one of the methods to use surplus cash on company’s books amid limited capex spends.


had surplus cash in excess of Rs 868 crore as of H1FY23 end and as per buy-back regulation the maximum buy-back quantum is around Rs 98 crore (i.e. up to 25 per cent of total shareholders networth). With a buy-back price of Rs 200/share this corresponds to 14.95 per cent of equity capital of the company. This move is positive for shareholders, the brokerage said.


Meanwhile, in a separate regulatory filing, said that its board of directors, in their meeting held on November 25, 2022, has accorded in principle approval for the formation of a wholly-owned subsidiary company in India to explore the business opportunities in the carbon market.


Carbon are trading systems where carbon credits are sold and bought. Carbon was recognised as a tradable good when the Kyoto Protocol was signed in 1997. Nowadays, carbon is traded internationally in exchange for carbon credits.


In the past, India has made investments in producing carbon credits and exporting them to international enterprises. Between 2010 and June 2022, India issued 35.94 million carbon credits or nearly 17 per cent of all voluntary carbon market credits issued globally.


The market for carbon credits increased by 164 per cent globally in 2021. It is anticipated to reach $100 billion by 2030. The government now intends to forbid its exports, guarantee the expansion of a local domestic market for carbon credits, and increase its internal trade. With setting in carbon market, IEX will get early movers advantage and may garner volumes, ICICI Securities said.

[ad_2]

Source link

RELATED ARTICLES
- Advertisment -
Google search engine

Most Popular

Recent Comments