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Maharashtra Seamless gains as board approves buyback

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Capital Market
Last Updated : Apr 09 2014 | 8:00 AM IST

Maharashtra Seamless jumped 5.86% to Rs 227.55 at 09:17 IST on BSE, after the company's board of directors approved share buy-back proposal.

The announcement was made after market hours on Monday, 8 April 2013.

Meanwhile, the BSE Sensex was up 55.56 points, or 0.3%, to 18,493.34

On BSE, 10,404 shares were traded in the counter as against average daily volume of 5,951 shares over the past one quarter.

The stock hit a high of Rs 236 and a low of Rs 225.45 so far during the day. The stock had hit a 52-week high of Rs 398.95 on 10 April 2012 and a 52-week low of Rs 199.05 on 26 February 2013.

The small-cap had underperformed the market over the past one month till 8 April 2013, sliding 2.3% compared with the Sensex's 6.33% fall. The scrip had also underperformed the market in past one quarter, declining 21.79% as against Sensex's 6.61% fall.

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The company has an equity capital of Rs 35.27 crore. Face value per share is Rs 5.

Maharashtra Seamless' board of directors at its meeting held on 8 April 2013, approved the buy-back of fully paid up equity shares of the company at a price not exceeding Rs 300 per share, payable in cash and not exceeding an aggregate amount of Rs 100 crore, which is within 10% of the paid up capital and free reserves of the company as per audited accounts for the financial year ended 31 March 2012. The buy-back shall be from the open market through Stock Exchange(s). The buyback will be implemented with applicable statutory approvals.

The maximum buyback price of Rs 300 per share represents a 39.56% premium to Maharashtra Seamless' closing price of Rs 214.95 on Monday, 8 April 2013.

Maharashtra Seamless' net profit dropped 64.9% to Rs 28.40 crore on 36.6% fall in net sales to Rs 391.62 crore in Q3 December 2012 over Q3 December 2011.

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First Published: Apr 09 2013 | 9:22 AM IST

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