Chambal Fertilizers stock in focus as board approves buyback - Details

Shares of Chambal Fertilizers and Chemicals Limited are in focus today i.e. January 8 as the company's board of directors has approved the buyback of equity shares.

"The Board of Directors of the Company has approved buyback of fully paid-up equity shares of face value of Rs. 10/- each, not exceeding 1,55,55,555 equity shares (representing 3.74% of the total paid-up equity share capital of the Company as of March 31, 2023) at a price of Rs. 450 per equity share," the company said in an exchange filing.

Earlier, the stock of the company opened in green and went on to hit an intraday high of Rs 377.30. This is a jump of over 1.20 per cent against the previous close of Rs 372.80. 

However, the share gave up early gains amid selling pressure and last seen it was trading at Rs 371.50.

Chambal Fertilisers' share price has been falling for the last two days and has fallen around 4.55 per cent in the period. On technical parameters, the stock is currently trading higher above its 20-day, 50-day, 100-day and 200-day moving averages but lower than 5-day moving averages.

What is share buyback?

As the name suggests, buyback or share buyback is when a company buys its outstanding shares. This corporate action reduces the number of shares available on the open market and therefore increases the value of the remaining shares. This indicates that the company is bullish on its current operations. 

Usually, the company would buy back its shares from its shareholders at a premium to the current market price.

Chambal Fertilisers stock performance

In the last three months, shares of Chambal Fertilisers and Chemicals Ltd have gained 35.03 per cent, and have advanced 35.28 per cent in the last six months. 

Meanwhile, Bajaj Auto has also informed about the meeting and buyback proposals.