Premium buyback & good business forecast helps MPS Ltd hit upper circuit
The digital services provider company, MPS Ltd continued its gaining streak and hit an upper circuit on Wednesday. Its buyback offer and standalone growth in revenue is the key reason behind a strong rally in the stock price.
The company on Tuesday evening informed that its board has approved the buyback equity shares of the face value of Rs 10, representing 3.04 per cent of the total paid-up equity capital. The buyback price announced by the company is Rs 600 per equity share. This price is nearly 53 per cent higher than its previous (Tuesday) closing price on BSE. Its board has approved and fixed August 24, 2020, as the record date. This means that to be eligible for the participation in the buyback offer, investors must have shares in their Demat account before this date.
The stock price has gained 41 per cent since June 13, 2020, owing to the strong demand for its e-learning facilities and content solution business. The sales growth for these two businesses for the first quarter also reflected the same. It reported 10 per cent growth in the content solution business for the quarter. This trend is also expected to continue for the coming few quarters due to the rising demand for its digital services.
On Wednesday, the stock hit an upper circuit of 5 per cent on BSE to quote per share price of Rs 410.