OPEN APP
Home / Companies / News /  Route Mobile board to consider buyback of shares on 28 June, stock soars 5%
Listen to this article

Enterprise communications service provider Route Mobile surged more than 5.63% to 1,162.40 apiece on the BSE on Thursday after the company announced its board is considering buyback of shares on 28 June.

"Pursuant to Regulation 29(1)(b) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, it is hereby informed that, a meeting of the Board of Directors of the Company is schedule to be held on Tuesday, June 28, 2022, inter alia, to consider a proposal for buyback of fully paid up equity shares of the Company, in accordance with the applicable provision under the Companies Act, 2013 (including the rules and regulations framed thereunder), the Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018 (as amended), and other applicable laws," said the company in an exchange filing today.

Further, Route Mobile informed that the firm's trading window will remain closed from 23 June, 2022 till further intimation is submitted to the stock exchanges.

"In terms of Company's Code of Conduct ('Code of Conduct') for Prevention of Insider Trading, the trading window of the Company shall remain closed from June 23, 2022 till further intimation is submitted to the Stock Exchanges," the statement read.

A share buyback, also known as share repurchase, is a corporate action to buy back its own outstanding shares from its existing shareholders usually at a premium to the prevailing market price. It can be an alternative tax-efficient way to return money to shareholders. 

Share buybacks reduce the number of shares in circulation, which can increase the share value and the earnings per share (EPS).

Route Mobile last month acquired the artificial intelligence-based blockchain and DLT platform of Teledgers Technology for over 130 crore.

Under the agreement, Route Mobile subsidiary Route Ledger paid 4.9 crore as advance to Teledgers within 30 business days of signing the business transfer agreement and 125 crore on closing of the acquisition of the platform, Route Mobile had said.

Further, the Route Mobile arm paid 10 lakh to Teledgers as a license fee and performance-linked consideration based on the operational performance of the Teledgers.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.
Close
Recommended For You
×
Edit Profile
Get alerts on WhatsApp
Set Preferences My ReadsFeedbackRedeem a Gift CardLogout