Multibagger stock declares share buyback worth ₹21 Cr at a premium of 15%

With a market valuation of ₹1,317.20 Cr, KDDL LTD is a small-cap company that operates in the consumer discretionary industry. KDDL is a well-known Indian company that specialises in the production of watch components. Through its subsidiary, Ethos Limited, KDDL also operates the largest luxury watch retail network in India. A share buyback operation worth up to ₹21 crore has been announced by the firm via an open market deal, with a price per share of up to ₹1,200. This buyback presently commands a premium of 15.60% over the stock's Friday closing price.

The company has said in a stock exchange filing that its Board of Directors has “Approved the proposal of Buyback of fully paid-up equity shares having a face value of Rs. 10/- (Rupee Ten only) each of the Company at a price not exceeding Rs. 1200/- (Rupees One Thousand Two Hundred only) per equity share ("Maximum Buyback Price") and for an aggregate amount not exceeding Rs. 2100 lakhs (Rupees Twenty One Hundred Lakhs only) ("Maximum Buyback Size"), from the shareholders of the Company (other than the promoters, the promoters group and persons in control of the Company) payable in cash via "Open Market" route through the stock exchange mechanism which is less than 10% of the aggregate of the total paid-up share capital and free reserves of the Company.”

“At the Maximum Buy-back Size and the Maximum Buy-back Price, the indicative maximum number of equity shares to be bought back under the Buy-back would be 1,75,000 equity shares (representing 1.37 % which is less than 25% of the total number of paid-up equity shares of the Company). The Maximum Buyback size represents 9.73% and 8.47% of the aggregate of the total paid-up equity share capital and free reserves of the Company based on the latest audited standalone and audited consolidated financial statements of the Company as on March 31, 2022, respectively,” informed KDDL to stock exchanges.

On Friday, the shares of KDDL Limited closed on the NSE at ₹1,038.00 apiece level, up by 1.46% from the previous close of ₹1,023.10. The stock recorded a total volume of 10,852 shares compared to the 20-Day average volume of 13,576 shares. The stock has produced a multibagger return over the past five years of 230.63% and over the past three years of 227.62%. The stock has appreciated 10.12% over the past year, while its YTD downward slide is 0.52%. The stock had touched a 52-week-high of ₹1,191.00 on (03-Feb-2022) and a 52-week-low of ₹594.15 on (17-June-2022). For the quarter ended September or Q2FY23, the company posted a promoter shareholding of 49.07%, FIIs stake of 20.11%, DIIs stake of 2.39%, Government stake of 0.06% and a public stake of 28.36%.