Akzo Nobel India gains 6% on share buyback plan

The stock rallied 6% to Rs 1,911 on the BSE in intra-day trade after the company said that its board scheduled to meet on Friday, April 06, 2018, to consider proposal to buy-back its own shares.

Akzo Nobel India has rallied 6% to Rs 1,911 on the BSE in intra-day trade on Wednesday after the company said its board of directors are scheduled to meet on Friday, April 06, 2018, to consider proposal to buy-back its own shares.

The primary objective of a share buyback programme is to arrest the fall in the value of a stock by reducing the supply of the stock, which essentially pushes up the share price through a better P/E multiple. The other objective is to improve earnings per share (since the same dividend amount is now distributed among fewer