Rs 1,84,99,98,600 buyback: This small-cap auto ancillary company announces record date, Promoters likely to participate!

The stock has delivered a return of over 450 per cent in the past five years.

Sharda Motor Industries is primarily engaged in the manufacturing and assembly of auto components and white goods components. The company has announced the record date for the buyback.

Earlier the company announced that it has received approval from its Board of Directors to proceed with the buyback of up to 10,27,777 (Ten Lakh Twenty-Seven Thousand Seven Hundred and Seventy-Seven) fully paid-up equity shares. Each share has a face value of RS 2 (Indian Rupees Two). This buyback represents up to 3.46 per cent of the total equity shares in the company's paid-up equity share capital. The buyback will be executed at a price of Rs 1,800 (Indian Rupees One Thousand Eight Hundred) per equity share, payable in cash, for a total amount not exceeding Rs 1,84,99,98,600 (One Hundred and Eighty-Four Crore Ninety-Nine Lakh Ninety-Eight Thousand Six Hundred). The buyback will be conducted on a proportionate basis.

This buyback decision, previously communicated in letters dated April 18, 2024, and May 25, 2024, is in line with the company's strategic objectives to return capital to its shareholders. The buyback process will be executed in accordance with the regulations set forth by the Securities and Exchange Board of India (SEBI).

The buyback committee, constituted by the Board of Directors, has fixed Wednesday, June 5, 2024, as the record date for the buyback. This date is crucial as it determines the entitlement and the names of equity shareholders who will be eligible to participate in the buyback program.

Share Performance:

On Friday, the company's stock closed at around Rs 1569.40 per share, with a market capitalisation of Rs 4,666 crore. Additionally, the stock has delivered a multibagger return of around 2,143 per cent in the past decade.

Financial performance:

According to the Quarterly Results, in Q4 FY24, the company reported a revenue of Rs 703 crore, representing a growth of 2.21 per cent, and a net profit of Rs 86 crore. In FY24, the company reported a revenue of Rs 2809 crore and a net profit of Rs 295 crore, compared to a net profit of Rs 205 crore in the previous year.

Investors must keep this Small-Cap stock on their radar.

Disclaimer: The article is for informational purposes only and not investment advice.