Suprajit Engineering is one volatile stock today morning. From its close of Rs.619.20, it opened higher at Rs.627.15, going up further to an intraday high at Rs.629.40 but from there, it slipped into the red t Rs.586.45 and is currently trading in the red.

Then stock price rose after the company the company announced a buyback at a premium of 38% over the closing price on Wednesday. This is the second buyback after 2021.

The company intends to buyback 1.08% of the equity or 15 lakh shares at a price of Rs.750/share, to be carried out via the tender offer route – buyback of shares at this pre-determined price, no changes to the price now. Record date is 27^th August.

Then company also declared its Q1FY25 earnings – it posted a 15% (YoY) growth in net profit at Rs.38 crore while EBITDA stood at Rs.86 crore.

There is a slew of buybacks being announced over the last few days and more will come as post the Budget, wef 1st Oct 2024, the income received on the buyback will be taxed in the hands of the shareholder as dividend income and not like earlier, where the company was taxed. However, the shareholders will get to offset the cost of shares as a capital loss if they tender the shares in the buyback, post 1.10.2024.