Gandhi Special Tubes surges 16% on board nod for share buyback

The stock surged 16% to Rs 405, also its 52-week high on the BSE, after the company announced that its board approved share buyback at a price of Rs 500 per share through tender offer

Gandhi Special Tubes surged 16% to Rs 405, also its 52-week high on the BSE in intra-day trade, after the company announced that its board approved share buyback at a price of Rs 500 per share through tender offer.

“The company to undertake a buyback of up to 880,000 equity shares of Rs 5 each aggregating up to 5.99% of the total paid up capital of the company at a price of Rs 500 per share, on proportionate basis through tender offer,” Gandhi Special Tubes said in a BSE filing.

The promoters have the option to participate in the buyback, it added.

Currently, the promoters held 73.27% stake in Gandhi Special Tubes. Individual public shareholders held 18.6% holding, followed by foreign portfolio investors (3.53%), bodies corporate (2.26%) and non-residential Indians (1.27%), according to pre buy-back shareholding pattern disclosed by the company.

At 10:38 AM; the stock was trading 14% higher at Rs 398 on the BSE as compared to 0.3% rise in the S&P BSE Sensex. The trading volumes on the counter jumped nearly 10-fold with a combined 499,389 shares changed hands on the BSE and NSE so far.