Just Dial announces buyback at 79 per cent premium

The shares of Just Dial Ltd jumped nearly six per cent after it reported updates regarding the buyback plans, on Thursday, during the market hours.

The company had informed about the board meeting earlier this week. Its board in a meeting held on April 30, 2020 approved the share buyback of 31,42,857 equity shares, which makes up to 4.84 per cent of the total paid-up equity share capital of the company.

The major reason for the cheer in the stock price was the premium at which the buyback is set for consideration. The buyback will be done at Rs 700 per share price, at a premium of as high as 79 per cent from its closing price on April 29, which was at Rs 390. The total buyback size amounts to Rs 220 crore.

The stock price has already seen a strong run-up in the recent times due to the buzz of the buyback, coupled with positive sentiments in the market. It has gained as much as 20 per cent within a span of just one week. Such a high buyback premium can certainly help the stock price further in the near future.

At 12.35 pm on Thursday, the stock was trading 6.5 per cent higher at Rs 415.15 apiece on BSE.