The shares of this leading manufacturer of precision sheet metal gained up to 5 percent after the company’s board approved the proposal of buy-back of up to 6,00,000 fully paid-up equity shares of face value of Rs 10 each.
With a market capitalization of Rs 70.44 Crores. SM Auto Stamping Ltd, On Tuesday, The shares were trading at Rs 49.30 a share, an increase of 4.89 percent from the previous closing price.
In accordance with the company filing, the board of directors of SM Auto Stamping Ltd. approved the proposal to buy back up to 6,00,000 fully paid-up equity shares of the company from its shareholders on a proportionate basis through a tender offer route. The price per equity share is Rs. 60, payable in cash, with a maximum amount of Rs. 3.60 crore, excluding transaction costs.
Additionally, The shareholders of the company have approved the buy-back by passing a special resolution through a postal ballot. the record date to ascertain eligibility, the names of equity shareholders who are eligible to take part in the buyback, and the address to which the offer letter and tender form pertaining to the buyback will be sent.
Looking into the company’s performance, SM Auto Stamping Ltd’s revenue increased by 26 percent from Rs 54.33 Crore in FY2021-22 to Rs 68.66 Crore in FY2022-23. During the same period, net profit decreased by 12 from Rs 3.79 crore to Rs 3.32 Crore.
SM Auto Stamping Ltd. works around the clock to satisfy the discerning clientele’s ever-increasing needs from three locations covering a combined 50,600 square feet. An extra 82000 square feet have been set aside for expansion. SM is a rapidly expanding group. It has grown at a rate of 55–60% annually over the last five years.
Designing and producing sheet metal components and subassemblies for automakers is the focus of SM Auto Stamping Ltd.
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Written by:- Abhishek Singh
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