Rane Brake Lining reported an advancement of 12% after the company announced to buyback equity shares at Rs 825 per share. The company has fixed the capital of Rs 200 Million for the buyback. After the announcement of the buyback, the company shares are high by 12 percent to Rs 715 on the BSE in the intra-day trade on Thursday.
“The board has approved buyback of the company’s fully paid-up equity shares of Rs 10 each, from the open market through stock exchange mechanism, for a maximum price of Rs 825 per equity share up to an aggregate amount not exceeding Rs 22 crore excluding transaction costs and applicable taxes,” the company said in an exchange filing.
However, the company generated revenue of Rs 226 Million vs 152 Million (YOY) in the second quarter with an EBITDA margin of 21.0% vs 13.6% (YOY).
The chairman of Rane group said that his company is looking towards the demand after the festive season and his company has effectively handled the production demand while there was a shortage of labor force during COVID-19 lockdown. “The plant operations team effectively handled the production ramp-up despite the supply chain and labor availability challenges. The cost reduction measures and lower material prices helped in margin improvement. We remain cautiously optimistic about the sustenance of the demand post-festive season,” he said.
