Jindal Steel & Power rose 2.25% to Rs 238.60 at 9:27 IST on BSE after the company announced that the proposed buyback offer will open on 16 September 2013.
The announcement was made after market hours on Friday, 6 September 2013.
Meanwhile, the BSE Sensex was up 397.31 points, or 2.06%, to 19,667.37.
On BSE, 19,000 shares were traded in the counter compared with average volume of 6.50 lakh shares in the past one quarter.
The stock hit a high of Rs 241.35 and a low of Rs 238 so far during the day. The stock hit a 52-week high of Rs 473.90 on 20 December 2012. The stock hit a 52-week low of Rs 181.55 on 2 August 2013.
The stock had outperformed the market over the past one month till 6 September 2013, rising 19.42% compared with the Sensex's 2.87% rise. The scrip had, however, underperformed the market in past one quarter, falling 18.05% as against Sensex's 1.28% fall.
The large-cap company has an equity capital of Rs 93.48 crore. Face value per share is Re 1.
Jindal Steel & Power (JSPL), which earlier proposed to buyback shares worth up to Rs 1000 crore, will launch the buyback offer on 16 September 2013. The company's board had approved the resolution for buyback on 30 August 2013.
The buyback process will be through open market transaction. The offer will remain open till 15 March 2014, or as determined by JSPL's board after attaining minimum buy back target.
The company said in a statement to the stock exchanges that at the maximum price the shares that can be bought back would be 3.83 crore equity shares.
If the equity shares are bought back at a price below the maximum buyback price, the number of equity shares bought back could exceed the maximum buyback shares, but will always be subject to the maximum buy-back size, the company added.
The minimum buyback size is Rs 500 crore - half of the maximum buyback size. At the maximum buy-back price of Rs 261 per equity share and for the minimum buyback size of Rs 500 crore, the indicative maximum number of equity shares that can be bought back would be 1.91 crore equity shares, JSPL said.
JSPL's consolidated net profit surged 28.3% to Rs 494.28 crore on 4.1% decline in net sales to Rs 4490.80 crore in Q1 June 2013 over Q1 June 2012.
JSPL is one of India's major steel producers with a significant presence in sectors like mining, power generation and infrastructure.
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