Cement manufacturer Rain Commodities today said its board has approved Rs 51.52 crore share buy back plan, following which the shares of the firm hit the upper circuit and surged 20 per cent on the Bombay Stock Exchange.
In a filing to the BSE, Rain Commodities said the board has approved the buying back of 40,56,801 shares, at a price of up to Rs 127 a piece, for an amount not exceeding Rs 51.52 crore.
The company's scrip reacted positively to the announcement and surged 19.98 per cent to hit its upper circuit of Rs 91.85 on the BSE.
The share buyback is, however, subject to shareholders approval, the filing added.
The scrip was later trading at Rs 86.55, up 13.06 per cent in the late afternoon trade on the BSE.