Quick Heal Technologies gains 7% as board considers share buyback

The stock was up 7% to Rs 216 after the company announced that its board will consider share buyback proposal on March 5, 2019.

Shares of Quick Heal Technologies gained 7 per cent to Rs 216 on the BSE in intraday trade on Thursday, after the company announced that its board will consider share buyback proposal on March 5, 2019.

The company on Wednesday, after market hours, said that a meeting of the board of directors of the company is scheduled to be held on March 5, 2019, to inter alia consider and approve the proposal for buyback of equity shares of the company.

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 stock of IT software products firm hit a 52-week low of Rs 172 on February 18, 2019, has more than halved from its 52-week high level of Rs 354 on May 11, 2018.

At 09:26 am; Quick Heal Technologies was up 5.5 per cent at Rs 213 on the BSE. In comparison, the S&P BSE Sensex was up 0.40 per cent at 36,048. A combined 227,215 equity shares changed hands on the counter on the BSE and NSE so far.