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SIS Shares: Buyback announced for the fourth time in four years, SIS will buy back shares at this price
SIS Shares: Selling pressure is being seen in SIS shares today at a time when its board of directors has approved a buyback proposal of Rs 150 crore. The board has approved the buyback of 37.12 shares with a face value of Rs 5 from the shareholders. Its price has also been fixed. Talking about the share price movement, it is currently down 3.29 percent at Rs 330.75 on the BSE. Intra-day, it slipped 3.51 percent to Rs 330.00. Despite the announcement of buyback at a premium of more than 18 percent to Wednesday's closing price, this decline is probably because the company has not yet disclosed the record date for the buyback.
At what price will SIS buy back its shares?
The buyback of 37.12 lakh shares has been approved in the meeting of the board of SIS on March 25. These shares will be bought at a price of Rs 404, which is at a premium of 18.13 percent over Tuesday's closing price of Rs 342.00 on BSE. The number of shares that the company will buyback is equal to its 2.57 percent stake. This buyback will be through the tender offer route, meaning that the company will buy shares at a pre-fixed price. However, the record date for this buyback has not been fixed yet. The approval of the shareholders is also required on this proposal.
This is not the first time that the company will do a buyback, but it will be the fourth time in four years. Earlier in the year 2021, year 2022 and year 2023, the company had done a buyback at a price of Rs 550 through the tender offer route. By the way, let us tell you that according to the announcement of Budget 2024, the shareholders have to pay tax on the income that the shareholders get through share buyback, instead of the company.
How was the movement of shares in one year?
SIS shares were at Rs 484.00 on 24 April 2024 last year, which is a one-year record high level for its shares. This rally of the shares stopped here and it slipped more than 40 percent from this high level in 11 months to Rs 289.20 last week on 19 March 2025, which is a one-year record low for its shares. The shares recovered at the lower level and recovered more than 14 percent on the strength of buying, but it is still about 32 percent downside from the one-year high.
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