The company will buyback about 10,00,000 equity shares through the tender offer route at Rs 2,000 per share from all the eligible shareholders as on record date. The buyback amount excludes expenses to be incurred for various charges, costs and taxes.
The buyback offer represents a premium of 109% over the closing share price on February 1 — the day before it announced that it would consider a proposal for buyback of shares.
The resultant shares to be bought back represents 1.43% of the total number of equity shares in the total paid-up equity capital of the company as of March 2022.
Under a share buyback, the company buys back its own shares from shareholders and it is seen as a tax-efficient way to give cash back to investors. Share buyback reduces the number of shares available in the market and thereby increases the real value of the stock.
The promoters and members of the promoter group also intend to participate in the proposed buyback.
On Monday, Symphony stock closed 0.38% lower at Rs 1,081.05 apiece on the NSE. So far this year, the stock has gained 16.34% on a year-to-date basis. According to Trendlyne data, Symphony has an average target of Rs 1,218, which represents an upside of 12.41% from the current levels.For the recent third quarter, Symphony has reported a net profit of Rs 39 crore, higher by 84% year-on-year while revenue from operations rose 35% to Rs 277 crore during the same period. EBITDA margins during the quarter improved 260 basis points to 19.8% as compared to Rs 17.2% in the year-ago period.
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