GE Shipping board to consider share buyback plan
hares of Great Eastern Shipping surged 9% to Rs 299.85 on the BSE in Thursday’s intra-day trade after the company announced its plan for share buyback. The board of directors are scheduled to meet on Monday December 27, 2021 to consider and approve a proposal for buy-back of equity shares of the company.
The stock of shipping company has corrected 42% from its 52-week high level of Rs 477 touched on June 16, 2021, till Wednesday. It had hit a 52-week low of Rs 229 on January 29, 2021.
Share Buy-back is a corporate action in which a company buys back its shares from the existing shareholders usually at a price higher than market price. When it buys back, the number of shares outstanding in the market reduces.
The reasons for buyback are to improve earnings per share; return on capital, return on net worth and to enhance the long-term shareholder value.
For first half (April-September) of the current financial year 2021-22 (H1FY22), G E Shipping had reported 66% year on year (YoY) dropped in its consolidated net profit to Rs 235 crore from Rs 693 crore in H1FY21. Revenue from operations de-grew 10% YoY to Rs 1,654 crore from Rs 1,843 crore in same period previous fiscal.
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