Welspun Corp losing steam

Welspun Corp has been losing steam steadily for the past 3 sessions and in this period has lost 7%. Today, it opened with a loss at 4.5% and went on to hit an intra day low at Rs.127.20, down almost 6.5%.

The anticipation over the buyback price was over and profit booking came in though the buyback price is at a hefty premium.

The Board has approved the buyback of its shares at a price of Rs 140 apiece, aggregating of up to Rs 390crore.

The Board has arrived at this decision with a view of utilizing the Company’s surplus cash reserves and in order to enhance shareholder value. The buyback would be subject to shareholders’ approval, stated the company.

The promoters will participate in the proposed buyback up to the extent of 5% of the paid-up capital.