Shares of NIIT zoomed 20 percent to day's high price of Rs. 165.45 per share on the NSE. This is after the IT company announced that its buyback issue will open on April 12. The buyback proposed via the tender offer route will close on April 28, 2021.
On December 24, 2020, the company's board gave an approval for an up to Rs. 237 crore or around 9.8 million shares buyback offer at a price of Rs. 240 per share.
As at the quarter ending December, the promoters stake in the firm has been at 34.27 percent. Moreover as the software firm's pre-buyback shareholding pattern, FPI holding in the firm is at 23.80 percent then follows individual shareholders (22.37 percent), mutual funds (8.01 percent) and others (8.2 percent).
In the buyback, company buys back its shares from the existing shareholders at a price usually higher than the market rates. So, as an impact upon buyback, the number of outstanding shares in the market gets reduced. Further, buyback also increases the proportion of shares a company owns.
At around 12:10 pm, the scrip of NIIT was trading higher by 20% at Rs. 165.45.