Excel Industries has surged 13% to Rs 193 on the BSE after the company announced a share buyback proposal.
“A meeting of the board of directors of the company will be held on March 28, 2016, to consider the proposal for buyback of fully paid equity shares of the company,” Excel Industries said in a statement.
As per December shareholding pattern, public shareholders held 48.98% stake in the company, while the promoters hold 51.02%.
Buyback involves purchase of outstanding public shares by a firm in order to reduce the number of shares in the market.
Thus far in 2016, the stock of speciality chemicals manufacturer underperformed the market by falling 29% as compared to 3% decline in S&P BSE Sensex till yesterday. Excel Industries hit a 52-week low of Rs 140 on February 12, 2016 in intra-day trade.
At 11:10 AM, the stock was up 10% at Rs 189 on the BSE as compared to 0.16% decline on the S&P BSE Sensex.