Shares of VRL Logistics were up 6 per cent to Rs 192 in intra-day deals on the BSE on Thursday after the company said its board will consider the share buyback proposal.
The logistic company’s board of directors is scheduled to meet on February 2, 2021 to consider a proposal for buy-back of equity shares of the company including matters related/ incidental thereto. The board will also consider and approve the un-audited financial results for the quarter ended December 31, 2020 (Q3FY21), VRL Logistics said in BSE filing on Wednesday after market hours.
In the past one year, the share price of VRL Logistics has seen one-third erosion, as compared to 14 per cent rise recorded by the S&P BSE Sensex.
A buyback, also known as a share repurchase, is when a company buys its own outstanding shares to reduce the number of shares available in the open market. The companies buy back shares for a number of reasons, such as to increase the value of remaining shares available by reducing the supply or to return surplus cash to shareholders.
As on December 31, 2020, the promoters held 68.05 per cent stake in VRL Logistics. Among public shareholders, mutual funds have 20.14 per cent holding, followed by individual shareholders (7.69 per cent) and foreign portfolio investors (2.74 per cent), the shareholding pattern data shows.
At 02:28 pm, VRL Logistics was trading 5 per cent higher at Rs 189 on the BSE, as compared to 1.5 per cent decline in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 895,000 equity shares changing hands on the NSE and BSE.