Godawari Power and Ispat Surges on Buyback Proposal Announcement

Services

Stock Market Masterclass

Equity Investment with CA Abhay

FNO Stocks with CA Abhay

Equity Trading with CA Abhay

Option Trading with CA Abhay

Godawari Power and Ispat Hits All-Time High as Company Considers Buyback Proposal

Team FS

10/Jun/2024

Key Points:

Godawari Power and Ispat's shares soar by 12% to hit an all-time high following the announcement of a proposal for a buyback of equity shares on June 15.
The company's market capitalization reaches ₹14,284 crore as the stock experiences a sharp upward movement.
Share buybacks are seen as a tax-efficient way to return cash to investors and reduce the number of shares available in the market, potentially increasing the stock's real value.

Godawari Power and Ispat Ltd. witnessed a significant surge in its share price, climbing as much as 12% to hit an all-time high on Monday, June 10. This sharp upward movement followed the company's announcement of considering a proposal for a buyback of equity shares on June 15. As a result, the company's market capitalization reached ₹14,284 crore, reflecting the positive investor sentiment surrounding the buyback proposal.

The proposal for a share buyback comes after Godawari Power and Ispat had previously carried out a buyback last year, purchasing shares worth up to ₹250 crore through the tender offer route. During the previous buyback, the company had bought back 50 lakh equity shares of ₹5 face value each, accounting for 3.66% of the total equity shares, at a fixed price of ₹500 per share.

A share buyback is considered a tax-efficient method to return cash to investors and reduce the number of shares available in the market. This reduction in the number of outstanding shares can potentially increase the real value of the stock, thereby boosting investor confidence and driving share price appreciation.

In response to the buyback proposal, the trading window for dealing in securities of the company will remain closed for all designated persons and their relatives from June 8, 2024, till the conclusion of the board meeting. From a technical standpoint, the stock was trading higher than various moving averages, indicating positive momentum. Additionally, the stock's relative strength index (RSI) stood at 61.1, suggesting bullish sentiment in the market.

Despite fluctuations in the stock market, shares of Godawari Power and Ispat Ltd. continued to exhibit strong performance, trading 8.27% higher at ₹1,055.75. With a gain of about 40% year-to-date and nearly 160% over the last one year, the stock has emerged as a lucrative investment opportunity for investors seeking capital appreciation and potential returns.

Also Read : Bharti Airtel Joins $100 Billion Market Cap Club, Boosting Telecom Sector Confidence

Join our Telegram Channel and WhatsApp Channel for regular Updates.

Services

Godawari Power and Ispat Hits All-Time High as Company Considers Buyback Proposal

Related News