Shares of Route Mobile in trade on Thursday settled higher by more than 8% at Rs. 1193.65 per share on the NSE. At the day's high it scaled to Rs. 1218.7, zooming 10.79% over the previous day's close of Rs. 1100. On the BSE, the stock ended at Rs. 1190.3 apiece.
The sharp gains in the scrip are triggered after the company said that its board will meet on Tuesday, 28 June 2022, to consider buyback of fully paid up equity shares.
In the filing to the exchange, the small cap IT consulting and services firm said, "it is hereby informed that, a meeting of the Board of Directors of the Company is schedule to be
held on Tuesday, June 28, 2022, inter alia, to consider a proposal for buyback of fully paid up equity
shares of the Company, in accordance with the applicable provision under the Companies Act, 2013
(including the rules and regulations framed thereunder), the Securities and Exchange Board of India
(Buy-back of Securities) Regulations, 2018 (as amended), and other applicable laws".
Share buyback also known as a share repurchase, is when a company buys its own outstanding shares to reduce the number of shares available on the open market. 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 prevent other shareholders from taking a controlling stake.
In the March ended quarter of Fy22, the company's consolidated net profit surged to Rs. 45.68 crore, a 29.15% increase over the same period last year. Importantly, net sales at the company grew at a sharp rate from Rs. 362.44 crore in Q4Fy21 to Rs. 626.07 crore.
Route Mobile scrip listed almost 2 years back in September 2020 at a price of Rs. 717 apiece on the NSE.
The company is an India-based Messaging and Voice application program interface (API) entity. The Company provides technology service for mobile communications industry with prime focus on messaging and voice solutions.