KIOCL gains 11% as board mulls share buyback proposal

Shares of KIOCL have moved higher by 11% to Rs 195 per share on the BSE after the state-owned company announced that its board will meet on Tuesday, September 18, 2018, to consider share buyback proposal. The stock bounced back 16% from its intra-day low of Rs 168 touched in early morning deal.

“The meeting of the board of directors of the Company is scheduled on 18/09/2018, to consider and approve buy-back of equity shares of the Company of face value of Rs 10 each, including matters related / incidental thereto and any other matter as the board of the directors may decide during the course of the meeting,” KIOCL said in a regulatory filing.

The government of India owns 99% stake in iron & steel/intermediates products company. The remaining 1% stake with insurance companies (0.43%) and individual shareholders (0.31%), the shareholding pattern data shows.

The stock hit a 52-week low of Rs 151 on August 1, 2018, falling 70% from its 52-week high touched on November 14, 2017, on the BSE in intra-day trade.

At 03:02 pm; KIOCL was trading 8% higher at Rs 190 as compared to 0.65% rise in the S&P BSE Sensex. The trading volumes on the counter jumped multiple-fold with a combined 185,497 equity shares changed hands on the NSE and BSE so far.