Mayur Uniquoters share price surges 10 per cent after Rs 30 crore buyback opens

The shares of Mayur Uniquoters were trading up by more than 10 per cent on Wednesday on the commencement of planned buyback of 7,50,000 equity shares. The buyback price is set at Rs 400 per share, which is around 28 per cent premium from its current levels.   

The company had announced last month that it would buy shares amounting to Rs 30 crore, with promoters intending to participate in the buyback as well. The promoters held a 61.48 per cent stake in the textiles company. The buyback size is 5.13 per cent and 5.12 per cent of the fully paid-up equity share capital and free reserves as per the standalone & consolidated audited financial statements for the fiscal year ended March 31, 2020.   

Meanwhile, in the July-September quarter (Q2FY21), Mayur Uniquoters' consolidated revenue fell by 3.9 per cent year-on-year (YoY) to Rs 126 crore. Profit after tax was down by 9 per cent YoY at Rs 20 crore, due to lower sales. However, operating profit margins improved by 560 basis points YoY to 23 per cent on account of savings in other expenses.  

At the time of market close on Wednesday, the stock pared some of its gains and closed at Rs 311.65 per share, up by 6.95 per cent or Rs 20.25 per share on BSE. Its 52-week high was recorded at Rs 330.65 while the 52-week low was Rs 118.20 on BSE.