Shares of the OnMobile Golbal rose after the company's board approved a share buy-back plan.
Buyback is the process of reducing a company's shares available in the stock market. Consider buyback as a company investing in itself, or using its cash to buy its own shares.
In the near term, share buybacks can boost the share price of a particular company. However, over the long period, it still boils down to the company's fundamentals.
The buy-back will happen from open market through stock exchange mechanism in accordance with the provisions of Section 68, 69 and 70 of the Companies Act, 2013. At a price not exceeding Rs. 86/- per equity share payable in cash for an aggregate amount not exceeding Rs.49 Crores.
At 12.05 pm IST, shares of the company as seen trading at Rs 72.60, higher by 4.99 per cent. It touched an intra-day high of Rs 72.60 during the trade.