Share buyback is the practice where companies decide to purchase their own share from their existing shareholders either through a tender offer or through an open market. In such a situation, the price of concerning shares is higher than the prevailing market price.
Companies buy back shares to increase shareholder value by reducing the number of outstanding shares, which boosts earnings per share (EPS). Buybacks also signal confidence in the company’s future and offer a tax-efficient way to return excess cash to shareholders.
Here’s a list of companies planning share buybacks with premiums up to 22 percent:
KDDL Limited
KDDL Limited manufactures watch components (dials and hands), precision engineering components, and press tools. Its segments include Precision and Watch Components, Watch and Accessories, Marketing Support and Services, Luxury Cars, and many others.
With a market capitalization of Rs.4,164 crores, the company’s share price closed at Rs.3,321.7 per share on Monday’s trading session, rising around 1.24 percent compared to its previous closing price.
KDDL Limited announced a buyback of up to 2,37,837 equity shares, representing 1.9 percent of total shares, at Rs.3,700 per share, totaling Rs.88 crores. The buyback premium is nearly 11 percent, with a record date of August 27, 2024.
Looking forward to KDDL’s financial performance, revenue inclined by 8.5 percent to Rs.360 crore in Q1FY25 from Rs.332 crore in Q1FY24. During the same time frame, net profit decreased 15 percent to Rs.28 crore from Rs.33 crore.
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Indian Toners & Developers Limited
Indian Toners & Developers Ltd. is a leading manufacturer of compatible toners for Photocopiers, Laser Printers, Digital Machines, and Multi-Function Printers. It is one of the largest manufacturers of compatible toners in South East Asia.
With a market capitalization of Rs.400 crores, the company’s share price closed at Rs.368.8 per share on Monday’s trading session, rising around 1.57 percent compared to its previous closing price.
Indian Toners & Developers Ltd. announced a buyback of up to 4,58,268 equity shares, representing 4.22 percent of total shares, at Rs.450 per share, totaling Rs.20.62 crores. The buyback premium is nearly 22 percent, with a record date of August 30, 2024.
For Indian Toners & Developers, revenue fell by 4.7 percent to Rs.35.32 crore in Q1FY25, compared to Rs.37.07 crore in Q1FY24. Net profit also decreased by 46.4 percent, dropping to Rs.3.68 crore from Rs.6.86 crore during the same period.
Weizmann Limited
Weizmann Limited is an India-based company focused on textile processing and exports, primarily targeting the African market. Its product range includes Cotton Voiles, Pracale, and African Prints.
With a market capitalization of Rs.222 crores, the company’s share price closed at Rs.139.9 per share on Monday’s trading session, rising around 3.63 percent compared to its previous closing price.
Weizmann Limited announced a buyback of up to 3,65,169 equity shares, representing 2.3 percent of total shares, at Rs.160 per share, totaling Rs.5.84 crores. The buyback premium is nearly 14.4 percent, with a record date of August 30, 2024.
Weizmann Limited’s financial performance showed a 37 percent decline in revenue, falling to Rs.20.98 crore in Q1FY25 from Rs.33.27 crore in Q1FY24. Net profit also decreased by 71.5 percent, dropping to Rs.0.84 crore from Rs.2.94 crore during the same period.
Nucleus Software Exports Limited
Nucleus Software Exports Limited is a leading provider of lending and transaction banking solutions for the global financial services industry. Its software supports over 200 financial institutions in 50 countries, covering retail and corporate banking, cash management, internet banking, automotive finance, and more.
With a market capitalization of Rs.3,705 crores, the company’s share price closed at Rs.1,383.75 per share on Monday’s trading session, rising around 0.36 percent compared to its previous closing price.
Nucleus Software Exports Limited announced a buyback of up to 4,48,018 equity shares, representing 1.67 percent of total shares, at Rs.1,615 per share, totaling Rs.72.35 crores. The buyback premium is nearly 17 percent, with a record date of September 3, 2024.
Nucleus Software Exports Limited’s financial performance for Q1FY25 showed a 5.8 percent decline in revenue, which fell to Rs.195 crore from Rs.207 crore in Q1FY24. Net profit also decreased by 44.5 percent, dropping to Rs.30 crore from Rs.54 crore during the same period.
Written by – Siddesh S Raskar
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