TD Power Systems surges 31% in four days on share buyback plan

The stock moved higher by 13% to Rs 145, extending its past three days 16.5% rally on the BSE ahead of the board meeting today to consider a share buyback proposal.

Shares of TD Power Systems have moved higher by 13% to Rs 145 per share, extending their 16.5% rally in past three days on the BSE ahead of the board meeting later in the day to consider a share buyback proposal.

“The meeting of board of directors of the Company will be held on Wednesday, September 26, 2018, inter alia, to consider a proposal for buy back of equity shares of the Company including matters related/incidental thereto and any other matter as the Board of the Directors may decide during the course of the Meeting,” TD Power Systems said in a BSE filing. The company made the announcement on Friday after market hours.

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 TD Power Systems hit an all-time low of Rs 110 on September 19, 2018, during intra-day trade. Thus far in the calendar year 2018, it had underperformed the market by falling 43% as compared to a 9% rise in the Sensex till last Wednesday.

At 03:03 pm; the stock was trading 12% higher at Rs 144 on the BSE, against 0.36% decline in the benchmark index. The trading volumes on the counter nearly doubled with a combined 480,959 equity shares changed hands on the NSE and BSE so far.