Sterlite Tech share price jumps 8% after board approves share buyback

The share price of Sterlite Technologies spiked more than 8 percent intraday on March 24, the day digital technology company’s board of directors approved the buyback of fully paid-up equity shares.

The board approved the buyback of fully paid-up equity shares of face value of Rs 2 each for a total amount not exceeding Rs 145 crore. The price will not exceed Rs 150 per equity share, excluding transactional and all other kinds of costs, the company said.

The maximum buy back size represents 9.95 percent and 9.32 percent of the aggregate of the total paid-up equity capital and free reserves (including securities premium) of the company based on the audited standalone and consolidated financial statements respectively of the company for last financial year ended on March 31, 2019, it added.

The stock, which has eroded 61 percent in the last six months, was quoting at Rs 68.05, up Rs 4.60, or 7.25 percent. It has touched an intraday high of Rs 75.55 and an intraday low of Rs 62.

The stock also witnessed spurt in volume by more than 1.03 times and was trading with volumes of 253,791 shares, compared to its five-day average of 214,750 shares, an increase of 18.18 percent.