The share price of employee leasing service provider Teamlease zoomed 4 percent on February 3 after the company announced a buyback of up to 3.27 lakh shares at Rs 3050 apiece, up to Rs 100 crore.
The buyback will be through the tender offer route and the price represents a premium of 25 percent over the closing price of January 24, 2023, when the board meeting for the buyback was announced, the company said on February 3.
Follow our live blog for all the market action
At 1 pm, the stock was quoting at Rs 2,332 apiece on the NSE, up 3.7 percent, after hitting an intraday high of Rs 2,362. Trading volumes at 44,946 were 2.5x the 20-day average volume of 17,849.
The company has appointed Edelweiss Financial Services as the manager to the buyback. Record date, timelines and other details will be announced with the letter of offer, as per the exchange filing.
For Q3 FY23, the company reported net sales at Rs 2,008.28 crore, up 13.97 percent from Rs 1,762.08 crore in December 2021. Net profit, however, fell to Rs 28.96 crore, 3.38 percent from the year-ago period. The company's shares took a 7 percent beating on poor results on January 27.
The company has that its margins will be under pressure for the coming quarters as well given the soft demand, realisation pressure, and the NEEM (National Employability Enhancement Mission) impact.