Welspun Enterprises in the limelight
Welspun Enterprises slipped almost 5% to Rs.58.55; though it has recovered a bit from that level, it remains 4% down. The stock’s 52-week low is at Rs.43 and high at Rs.75.30.
Two days ago, when the company announced that its Board would meet on the 22nd of Dec to consider a buy back, in anticipation, the stock had risen 12% and today when it knew the outcome, profit booking and disappointment pulled down the price.
The company announced yesterday that in order to use its substantial cash reserve and to increase shareholder value, the Board approved buy back of 25% of the company’s equity share capital at a price of Rs.62/share. Yesterday, the stock had closed at Rs.61.45.
Promoters who hold 37.35% stake will also be participating in the buy back though foreign promoters with their 2.17% stake will not be participating.