Share of information technology (IT) services company NIIT rose 5% to hit a fresh 52-week high of Rs 209.90 in early trade today after the firm said its board has approved an up to Rs 237 crore buyback proposal at Rs 240 per equity share.
The buyback price of Rs 240 per share is at a 20% premium to Thursday's closing price.
With a gap-up chart pattern today, the share price of NIIT Ltd. opened with a gain of 4.29% today at Rs 209 from the previous close of Rs 200.40 on BSE and jumped 5% to day's high as well as its newly registered 52-week high of Rs 209.90. The stock also hit an intraday low of Rs 204.40.
With a consecutive rise of 20.32% in the last four days, the stock trades higher than 5, 20, 50, 100, and 200-day moving average.
The stock with rising investor participation on BSE and NSE, has climbed 17% in one month and 21% year to date. Market capitalisation of NIIT Technologies Ltd. share price stood at Rs 2,943.23 crore today.
NIIT Technologies Ltd. share price closed 3.57% higher at Rs 207.55 on BSE today.
Earlier on December 21, the IT firm had announced that its board would meet on December 24 to consider a proposal for buyback of equity shares of the company.
"The board of directors of the company at its meeting held on December 24, 2020, has inter-alia approved a proposal for buyback of up to 9.87 million equity shares of the company for an aggregate amount not exceeding Rs 237 crore," NIIT said in a regulatory filing on Thursday.
The buyback, which is proposed to be made under the tender offer route, is subject to shareholders' approval by passing a special resolution through postal ballot, the filing said.
The public announcement setting out the process, timelines and other requisite details would be released in due course, it added later.