Nava Bharat Ventures planning buyback of shares; stocks leap 15% in intraday
On Tuesday, Nava Bharat Ventures Limited informed the NSE and the BSE after the day’s market closing that its board of directors will now be holding a meeting on Friday to take into consideration the proposal to complete the buyback of shares by the company.
The stock buyback is the process by which a company repurchases the shares it had issued. A buyback occurs when the issuing company pays shareholders the market value per share and re-absorbs that portion of its ownership that was previously distributed among public and private investors.
According to Nava Bharat, this decision has been taken in view of its mission “to continue to grow as a diversified multinational with strong fundamentals, to minimize our impact on the environment, raw materials usage and communities, and to benefit local communities, add value to natural resources and reward stakeholders.”
The stock of Nava Bharat Ventures Limited has severely underperformed in the last 52-week period. The one-year returns of the company were negative at -3.24% and the three-year returns were even worse at -56.57%.
The share price of Nava Bharat Ventures listed on the Bombay Stock Exchange reached an intraday high of over 15% to Rs 67.30 within an hour of market opening. At 11:20 AM (IST), the stock was trading up by 11.41% at Rs 65.60