Matrimony announces share buyback, stock rallies
1 min read . Updated: 22 Jun 2022, 10:50 AM IST
Premium- Matrimony's board approved share buyback up to ₹75 crore at ₹1,150 per share
Shares of Matrimony.com Ltd surged more than 9% to ₹840 apiece on the BSE in Wednesday's early deals after the company announced share buyback up to ₹75 crore at buyback price of ₹1,150 per share. The company has fixed Monday, July 4, 2022, as the record date for the purpose of determining the names of the equity shareholders who are eligible to participate in the share buyback and their entitlements.
"This is to inform you that the Buy Back Committee of the Board of directors of the company at the meeting held today i.e. June 22, 2022, inter-alia, approved Final Buyback price of ₹1,150 /- per equity share (the "Buy Back Price") and the aggregate amount of Buy Back upto ₹750 Million (the "Buy Back Size") excluding any expenses incurred or to be incurred for the Buyback," said the company in an exchange filing today.
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).
“The total number of shares to be bought back in the Buy Back shall be upto 6,52, 173 (Six Lakh Fifty Two Thousand One Hundred and Seventy Three Only) equity shares representing 2.85 % of the total number of equity shares in the total paid up equity share capital of the company," Matrimony.com added. The company has appointed BSE Limited as the designated stock exchange for the purpose of buy back of equity shares.
The matchmaking service provider had registered a 15.6% jump on its consolidated net profit for the fourth quarter to ₹11.7 crore. Total income for the quarter under review grew to ₹116 crore from ₹105 crore registered same quarter last year.
The board of directors also recommended a final dividend of 100 per cent ( ₹5 per equity share of par value of ₹5 each), subject to the approval of the shareholders.
