Cosmo First stock rose over 2% today after the firm’s board approved buyback of shares worth Rs 108 crore from existing shareholders. The company will buy back 10.09 lakh shares of face value of Rs 10 each representing 3.70 per cent of the total paid-up equity share capital of the company by March 31, 2022.
Cosmo First stock rose 2.28 per cent to Rs 847 against previous close of Rs 828.30 on BSE. The stock opened at Rs 831.90 on BSE. Cosmo First stock has gained 21% in the last six sessions due to share buyback talks.
The stock is trading above 5 day, 20 day and 50 day moving averages but below 100 day and 200 day moving averages.
The stock has gained 21.66% in one week. However, the stock has fallen 8 per cent in one year and is down 8.54 per cent in 2022.
A total of 9133 shares of the firm changed hands on BSE for a turnover of Rs 76.48 lakh. The market cap of the firm rose to Rs 2,300 crore.
The stock touched a 52-week high of Rs 1427.38 on Apr 11, 2022 and a 52-week low of Rs 657.95 on Nov 15, 2022.
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The buyback price has been fixed at Rs 1,070 per share (face value Rs 10 per share), amounting to a premium of 42% over the closing price on November 28, 2022.
The Board has fixed December 14, 2022 as the record date for the purpose of ascertaining the eligibility of shareholders for buyback.
The firm reported a decline of 24.74 per cent in Q2 net profit at Rs 73.23 crore as against profit of Rs 97.30 crore in the corresponding quarter of the previous fiscal. However, sales increased by 2.45% to Rs 777.94 crore in the September quarter from Rs 759.37 crore in the corresponding quarter of the previous fiscal.
Cosmo First Limited, formerly Cosmo Films Limited, is a manufacturer of plastic semi-finished products. The company’s products include biaxially oriented polypropylene film, thermal film and coated film. It operates through two segments: Packaging Films and Others. The company’s manufacturing facilities are spread across India and Korea.
Meanwhile, Sensex fell 233 points to 63,050 and Nifty fell 75 points to 18,736 in early trade. The market has declined after eight consecutive sessions of gains.