Godawari Power and Ispat shares rise on plans of potential buyback

If approved, this will mark the steel manufacturer's first ever share buyback plan.

Shares of Godawari Power and Ispat climbed higher on March 16 after the company announced it may consider a buyback of equity shares at its board meeting on March 18. If approved, this will mark the steel manufacturer's first ever share buyback plan.

At 12:49 pm, shares of Godawari Power and Ispat were trading 2.54 percent higher at Rs 383 on the National Stock Exchange. The stock had also touched an intraday high of Rs 386.65.

Six lakh shares of the company also exchanged hands on bourses so far, as against the one-month daily traded average of  three lakh shares. Investors also remained focused on announcements related to details of the buyback like record date, buyback price and size.

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A company repurchases shares from shareholders during a buyback, usually at a premium from the prevailing market price. Buybacks are an alternative tax-efficient way to return money to shareholders and the objective is to also help arrest the fall in the value of the stock.

After being under pressure for much of 2022 on the back of declining profits, the stock has managed to stage some recovery in recent months buoyed by improved prospects due to reopening of China.