Shares of the Just Dial surged on Friday after the Board of Directors approved the proposal to buy back of shares.
Usually, buyback happens, in order to reduce the capital base or to help improve the intrinsic value of the shares. Just Dial was listed on bourses in June 2013.
The company has approved the proposal to buyback the fully paid-up equity shares of face value of Rs. 10 each of the Company ("Equity Shares") from the shareholders of the Company on a proportionate basis through a tender offer (the "Buy-back").
Buy-back shall be up to 25% of the aggregate of paid-up capital and free reserves of the Company at a maximum price Rs. 1,550 per Equity Share.
However, this will be subject to the approval of the shareholders of the Company and approvals of statutory, regulatory or governmental authorities as may be required under applicable law.
Shares of the company were as seen trading at Rs 1,136, higher by 2.37 per cent on BSE at 11.00 AM IST. The stock touched an intra-day high of Rs 1,207 during the trade.