Comments
Sterlite Technologies became the first company to have announced a 'share buyback' amidst market rout. In budget, finance minister Nirmala Sitharaman had announced a 20 per cent tax on buy back of shares. The past two years saw record buy back of shares, but companies are expected to shun share buy back due to the tax. Sterlite Technologies has now dared to attempt it when such a move is most required to stabalise the share price, analysts said.
The share price of the company rose 7 per cent at 1.00 pm to touch a high of ₹71.95. The share price had crashed from a high price of around ₹140 in January to touch a recent low of ₹58 in the market sell-off.
"More companies could take such a move and not really worry about the tax. Its a win for the government as it will be collecting revenues even amidst a severe market rout," a research head at Mumbai broking said.
"Board of Directors of Sterlite Technologies Limited will be held on Tuesday, March 24, 2020 to consider the proposal for buyback of fully paid-up equity shares of the company," the announcement from Sterlite said.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.