Shares of Sasken Communication Technologies rallied as much as 8.6 per cent to hit intraday high of Rs 448.40 ahead of its board meeting to finalise the price at which the shares will be bought back.
Sasken Communication Technologies informed BSE that, “a meeting of the buy-back Committee of the board of directors of the company will be held on December 23, 2016, inter alia, to finalize the price at which the shares will be bought back and to fix the Record Date to ascertain the shareholders who are eligible to participate in the buy-back.”
“The outcome of the postal ballot/e-voting being conducted seeking shareholders’ approval will also be announced on December 23, 2016,” added the statement.
Board of directors of Sasken Communication Technologies had in October unanimously approved the buy-back of over 28 lakh equity shares representing 15.94 per cent of the total paid-up equity share capital of the company at a maximum price of Rs 425 per share.
Buy back of shares is taken positively by investors because it indicates management’s faith in the company’s business. Companies also buy their shares if they fell that the stock is undervalued, analysts say.
Sasken Communication Technologies in the quarter ended September 2016 reported net profit of Rs 9.57 crore on sales of Rs 118.39 crore.
Bengaluru-based Sasken Communication Technologies deals in business of product engineering and digital transformation services and employs 2,200 people and operates in Germany, Japan, UAE, UK, and USA.
As of 11:52 a.m., shares of Sasken Communication Technologies traded 2 per cent higher at Rs 122.80, outperforming the Nifty which was up 0.15 per cent.[“source-ndtv”]