NIIT Ltd stock rose 18% in early trade today after the firm said it would begin Rs 237-crore share buyback offer on April 12. The small cap share climbed 18.65% to Rs 163.50 against previous close of Rs 137.80 on BSE.
NIIT stock has gained 101% in one year but slipped 21.14% since the beginning of this year Market cap of the firm rose to Rs 2,327 crore on BSE. In a month, the share has lost 16.17%.
The buyback will comprise up to 9,875,000 equity shares for an aggregate amount not exceeding Rs 237 crore. The buyback price has been fixed at Rs 240, premium of 72.91% against previous close (March 30) of 138.80 on BSE.
The skills and talent development firm said , "The company, has received final observations from the Securities and Exchange Board of India on the Draft Letter of Offer dated February 24, 2021, vide its letter dated March 30, 2021. In accordance with the SEBI (Buy-Back of Securities) Regulations, 2018, the company will dispatch the Letter of Offer for the buyback to eligible shareholders, appearing on the record date of February 24, 2021, on or before April 5, 2021."
The buyback will close on April 28, 2021.
On December 24 last year, the board of directors had approved a proposal for buyback of equity shares. Meanwhile, Sensex and Nifty opened higher on Thursday, tracking firm cues from Asian markets. Sensex opened higher by 357.92 points, or 0.72 per cent at 49,867 and Nifty belled at 14,791, up 101 points or 0.69 per cent.