Shares of Godawari Power and Ispat surged nearly 12 percent, reaching a record high of Rs 1,088.65 on June 10, following the company’s announcement of plans to consider a share buyback at its upcoming board meeting on June 15.
If approved, this would mark the company’s second share buyback in just two years. In its previous buyback, Godawari Power and Ispat repurchased shares worth up to Rs 250 crore through the tender offer route.
A share buyback involves a company purchasing its own shares from shareholders, often seen as a tax-efficient way to return cash to investors. It also reduces the number of shares in the market, potentially increasing the stock’s value.
As of 2:32 pm, shares of Godawari Power were trading at Rs 1,047.95 on the NSE.
Trading volumes for the stock also saw a significant increase, with 16 lakh shares changing hands on the bourses so far, significantly higher than the one-month daily traded average of 5 lakh shares.
Over the past year, the stock has been on an upward trajectory, delivering returns of over 175 percent.
Disclaimer: The opinions and investment advice provided by experts on LegalParivar.com are their own and do not reflect those of the website or its management. Users are advised to consult certified experts before making any investment decisions.
