Multibagger stock falls 6% on share buyback announcement, top loser on BSE 

Shares of Jai Corp Ltd fell 6% in early deals today even as the firm announced that it will buy back equity shares worth up to Rs 118 crore. The multibagger stock fell 6.25% to Rs 367.95 against the previous close of Rs 392.50. The buyback price of Rs 400 is just 1.87% per cent higher than the previous close. 

Jai Corp's market cap slipped to Rs 6,640 crore on BSE.     

The plastic products maker's stock has surged 187% in three years and gained 181% in two years.

Jai Corp stock logged a turnover of Rs 3.03 crore with 0.82 lakh shares changing hands on BSE. The stock touched its record high of Rs 438 on July 2, 2024 and fell to its a 52-week low of Rs 203 on September 20, 2023.

In terms of technicals, the relative strength index (RSI) of the stock stands at 62.2, signaling it's trading neither in the overbought nor in the oversold zone. It has a one-year beta of 1.2, signaling high volatility during the period.

Jai Corp shares are trading lower than the 5 day, 10 day, 50 day but higher than the 20 day, 30 day, 100 day, 150 day and 200 day moving averages.

The company will repurchase up to 29.44 lakh fully paid-up equity shares, which carry a face value of Rs 1 each through this process, it said afetr market hours on Thursday. The number of shares Jai Corp plans to buy back amounts to 1.65% of the total equity shares of the company.

The company also intends to buy back the shares through the "tender offer" route, which means that the buyback price will remain fixed and will not change. 

Jai Corp is primarily involved in manufacturing activities, which produces Woven Sacks/Fabric, Jumbo Bags, PP Staple Fibre and Geotextiles, Spun Yarn and production, processing and trading of CR Coils/Sheets, GP/GC Coils/Sheets and HR Coils/Plates.