Matrimony.com, a leading online matchmaking service provider, witnessed a surge in its share price following the company's board approval for a ₹72 crore share buyback program.
Board approves share buyback proposal
- The company plans to buy back equity shares worth ₹72 crore.
- This buyback program represents 24.85% of Matrimony.com's total equity capital.
- The record date for the buyback will be announced later.
Attractive offer for shareholders
- The company will repurchase shares at a price of ₹1,025 per share, representing a 27% premium compared to the previous closing price.
- 15% of the repurchased shares will be reserved for small shareholders as mandated by regulations.
- Promoters and promoter group companies will not participate in the buyback.
Positive market reaction
- Following the announcement, Matrimony.com's share price rose by 2.6%, extending its winning streak to four consecutive days.
- The stock has gained over 10% during this period.
Previous buyback program (for context)
- In June 2022, Matrimony.com executed a similar buyback program at ₹1,150 per share with an offer size of ₹75 crore.
- The company repurchased 6.5 lakh shares at a 49.21% premium over the then-closing price.
The share buyback program indicates Matrimony.com's confidence in its future prospects and aims to enhance shareholder value - which is great for those interested in share market investment. This move, coupled with the recent stock price increase, suggests positive investor sentiment towards the company.
