Home / Markets / Stock Markets /  Multibagger stock announced buyback at 60% premium after 400% rally in 2 years

Buyback of shares 2022: Shares of SP Apparels are one of the multibagger stocks on Dalal Street. This small-cap multibagger stock is one of those stocks that have given whopping return in post Covid rally since 2020. In this period of near two years, this multibagger stock has risen from around 70 to 360 apiece levels, delivering more than 400 per cent return to its long term positional shareholders.

This multibagger stock is in news these days as the small-cap company has announced buyback of shares at a whopping premium. The board of directors of the company has announced buyback of shares at 585 per share whereas SP Apparels share price today is around 360 apiece levels. This means the small-cap company has announced buyback of shares at a premium of more than 60 per cent, which may attract shareholders of the multibagger stock to tender their shares.

Here we list out important buyback details of the multibagger stock in 10 points:

1] SP Apparels buyback price: The small-cap company has announced buyback price at 585 per share.

2] SP Apparels buyback record date: Buyback record date was on 7th October 2022 this means only those shareholders of the company are entitled to apply for the buyback offer who held this multibagger stock on this buyback record date.

3] SP Apparels buyback date: The offer will open on 3rd November 2022 and it will remain open till 17th November 2022.

4] SP Apparels buyback route: The offer will be executed through tender route.

5] SP Apparels buyback ratio: In reserved category for small shareholders, entitlement ratio of the buyback offer is 2 shares of every 27 shares held on the record date. In general category for all other shareholders, entitlement ratio of the offer is 1 share for every 48 stocks held on buyback record date.

6] SP Apparels buyback issue size (shares): The company plans to buy 6 lakh shares in this buyback offer.

7] SP Apparels buyback size (amount): The offer won't exceed 35.10 crore worth of shares.

8] Impact on RoE: The offer is expected to improve company's Return on Equity (RoE) through distribution of surplus cash to its shareholders, enhancing the net return of shareholders.

9] Impact on EPS: Buyback offer will improve Earning Per Share (EPS) of the multibagger stock as it would reduce the equity base of the listed stock.

10] SP Apparels buyback acceptance ratio: A large number of shareholders are expected to apply for the buyback offer. Hence, buyback acceptance ratio of the multibagger stock is expected to remain lower.

Asit Manohar
Chief Content Producer at Live Mint Digital Team
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