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JSPL share buyback to commence on Sep 16, stock surges 5%

JSPL propose to buy back 8.7% of the paid up capital at a maximum price of Rs 261 per share.

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SI Reporter Mumbai
Last Updated : Sep 06 2013 | 2:19 PM IST
Jindal Steel and Power (JSPL) have moved higher by 5% to Rs 237 after the company said the share buyback offer will commence on September 16, 2013.

The company planning to buy back 8.7% of the paid up capital, amounting to not more than Rs 1,000 crore, will open on September 16, according to public announcement made by JSPL in the Business Standard newspaper.

The board had already fixed a price of Rs 261 per share for the buyback offer from the open market through stock exchanges.

Companies use share buy back as a tool to improve their share price valuations, though it reduces the quantum of free float shares in the open market.

The stock opened at Rs 229 and touched a low of Rs 227 so far on NSE. A combined 1.78 million shares change hands on the counter till 1416 hours on NSE and BSE.
 

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First Published: Sep 06 2013 | 2:16 PM IST

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