Symphony’s Rs 200-crore share buyback will kick off on May 3

Symphony has submitted the Draft Letter of Offer (LoF) with the Securities and Exchange Board of India for the buyback of equity shares of the company. The share buyback of the company will open on May 03, 2023, and close on May 17, 2023. The settlement of bids closes on the BSE on May 26, 2023.

Earlier, Symphony had fixed March 29 as the record date for its proposed Rs 200-crore share buyback. The company will buy back about 10,00,000 equity shares through the tender offer route at Rs 2,000 per share from all eligible shareholders as on the record date.

The buyback offer represents a premium of 109% on the closing share price on February 1. It is the day of sending intimation to consider and approve the proposed buyback sent to the exchanges.

The resultant shares to be bought back represents 1.43% of the total number of equity units in the total paid-up equity capital of the company as on March 2022.

Under a share buyback, the company buys back its own shares from shareholders and it is seen as a tax-efficient way to give cash back to investors. Share buyback reduces the number of units available in the market and thereby increases the real value of the stock.
In Tuesday's trade, Symphony stock was trading 1.21% higher at Rs 1,002 apiece on the BSE. So far this year, the stock has gained 7.8% on a year-to-date, while it has surged 19% in the last six months.

As per Trendlyne data, the average target price of the stock is Rs 1,115, which shows an upside of 11% from the current market rates.

The consensus recommendation from six analysts for the stock is a ‘hold’. Of them, 4 have strong ‘buy’ and ‘buy’ ratings, while one has a ‘sell’ rating. The remaining one has a hold rating.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)