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MARKET LIVE: Sensex, Nifty turn flat; Dreamfolks lists at 55% premium – Business Standard
Route Mobile announces share buyback: Price, size, key details to know
Enterprise communications service provider Route Mobile’s board has approved the buyback by the company of its fully paid-up equity shares at a price not exceeding ₹1,700 per equity share (Maximum Buyback Price) and for an aggregate amount not exceeding ₹120 crore (maximum buyback size), from the shareholders of the company, excluding promoters, promoter group and persons who are in control of the company. The buyback will be done via the open market route through the stock exchanges mechanism. At the maximum share buyback price and for the maximum buyback size, the indicative maximum number of equity shares bought back would be 705,882 (“Maximum Buyback Shares”) which is 1.12% of the total number of paid-up equity shares of the company. Further, the buyback shall not exceed the Maximum Buyback Size, which represents 9.95% and 7.31% of the aggregate of the total paid-up equity share capital and free reserves of the company, Route Mobile informed in an exchange filing. “The company shall utilize at least 50% of the Maximum Buyback Size i.e., INR 60,00,00,000 (Indian Rupees Sixty Crores only) (“Minimum Buyback Size”) towards the Buyback and accordingly, based on the Maximum Buyback Price and Minimum Buyback Size, the Company will purchase an indicative minimum number of 352,942 Equity Shares,” it added. The board has also approved the formation of a buyback committee and delegated its powers to the buyback committee to do all such acts, deeds, matters and things as it may, in its absolute discretion, deem necessary, expedient, usual or proper in connection with the buyback. A share buyback, also known as share repurchase, is a corporate action to buy back its own outstanding shares from its existing shareholders usually at a premium to the prevailing market price. It can be an alternative tax-efficient way to return money to shareholders. Share buybacks reduce the number of shares in circulation, which can increase the share value and the earnings per share (EPS). Additionally, Route Mobile’s board approved the appointment of Rathindra Das, group head legal, company secretary and compliance officer for the buyback. Route Mobile shares, that were trading over 5% lower in Wednesday’s early session on the BSE, are down more than 30% in 2022 (YTD) so far.
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Emudhra Shares Rise On Market Debut, List At Premium
Shares of eMudhra made a positive stock market debut on Wednesday with the stock listing at ₹270 apiece on the NSE, a premium of more than 5% as compared to its IPO issue price of ₹256 per share. On the BSE, eMudhra shares started trading at ₹271.
“The company’s tepid yet positive listing can be attributed to current market conditions, good prospects, and reasonably good responses from retail investors. The growing demand for data privacy, data protection, and digital transformation will help the company grow substantially in the medium to long term. However, the competitive nature of the industry and the rich pricing of the issue make it suitable for long-term investors post listing. Those who applied for listing gains can maintain a stop loss of ₹260,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.
The initial public offer (IPO) of digital signature certificate provider eMudhra was subscribed 2.72 times on the last day of its subscription. The ₹413 crore-IPO got bids for 3,09,02,516 shares against 1,13,64,784 shares on offer.
The portion meant for Qualified Institutional Buyers (QIBs) received 4.05 times subscription, while the category for Retail Individual Investors (RIIs) got subscribed 2.61 times and non-institutional investors 1.28 times.
The initial share sale had a fresh issue of up to ₹161 crore and offer for sale of up to 98,35,394 equity shares. Price range for the offer was at ₹243-256 per share. eMudhra Ltd raised ₹124 crore from anchor investors, ahead of its share sale.
Proceeds from the fresh issue will be utilised to repay debt, support working capital requirements, purchase equipment and pay for other related costs for data centre proposed to be set up in India and overseas locations, develop products, investment in eMudhra INC and for general corporate purposes.
eMudhra is a licensed certifying authority in India with a market share of 37.9% in the digital signature certificates market space in financial year 2021. The company has been engaged in the business of providing digital trust services and enterprise solutions to individuals and organisations.
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