Excel Industries has surged 16% to Rs 233 on the BSE after the company announced that its board approved buyback of equity shares of the company at a price not exceeding Rs 275 per share from the open market purchase.
“The board of directors of the company has approved the buyback of its fully paid-up equity shares of face value of Rs 5 each at price not exceeding Rs 275 per equity shares for a maximum amount of Rs 18 crore,” Excel Industries said in a statement.
The company shall buyback maximum 1.15 million equity shares from the existing shareholders other than the promoters, from the open market purchases through BSE and National Stock Exchange (NSE), it added.
In past four trading sessions, the stock of specialty chemicals manufacturer has rallied 36% from Rs 171 on March 21, after the company announced that the board will consider the proposal for buyback of equity shares of the company.
As of December 31, 2015, the promoters held 51.02% stake, while the remaining 48.98% stake with the public shareholders.
At 11:06 AM, the stock was up 15% to Rs 231 on the BSE as compared to 0.34% decline in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 413,899 shares changed hands on the BSE and NSE so far.