Allied Digital to buy back shares for Rs 140/piece

IT company Allied Digital Services on Saturday announced they are going to buy back equity shares of the company worth Rs 28 crore at a price of Rs 140 a piece.

The company would buy the shares subject to approvals by statutory authorities. The stipulated buy back would be up to a maximum limit of 20 lakh shares, the company said in a statement.

“The motive behind buy back of shares is to build confidence among the investor community about our company’s growth prospects,” said the company’s Chairman and Managing Director Mr Nitin Shah in the statement.

“Fundamentally our company has been doing well and has geared up to encash emerging opportunities in remote infrastructure management, managed security services and governance and regulatory compliance segment,” Mr Shah said.

Allied Digital reported a consolidated total income of Rs 175.06 crore in the quarter ended on December 31, 2010 as compared to Rs 180.50 crore in the corresponding quarter last fiscal. The company’s profit in this quarter was also down to Rs 19.77 crore as compared to Rs 27.17 crore posted in the same quarter of last fiscal.

Allied Digital said in the statement they had to incur exceptional expense of Rs 8.39 crore during the quarter in form of provision for doubtful debts and back office transition cost of its US operations.