VRL Logistics skyrockets on buyback announcement
The shares of VRL Logistics surged more than 10 per cent after the company’s board of directors approved the proposal for buyback of shares. Additionally, positive growth in the company’s financial performance for Q3FY21 also boosted bullish investors’ sentiments.
The company's board approved a proposal to buy back shares up to Rs 60 crore at a maximum price of Rs 300 per share. The stated buyback price of Rs 300 per share is a 46.4 per cent premium to the scrip’s closing price of Friday i.e. February 5, 2021.
According to the press release, the aggregate consideration of the buyback shall not exceed Rs 60 crore. The company also mentioned additional details in the press release such as the maximum buyback price while for the maximum buyback size, the indicative maximum number of equity shares proposed to be bought back would be 20 lakh equity shares, which is 2.21 per cent of the total number of paid-up equity shares of the company.
VRL Logistics also announced its Q3FY21 results wherein total income rose by 1.59 per cent to Rs 568.55 crore from Rs 559.64 crore reported for Q3FY20. Net profit increased by 54.05 per cent to Rs 39.73 crore in Q3FY21 compared to Rs 25.79 crore reported in Q3FY20.
The scrip gained by around 16 per cent since the onset of February 2021, while the stock has jumped by around 51.12 per cent in the last six months.
On Monday, the stock of the company closed at Rs 224.80, up by 9.71 per cent or Rs 19.90 per share. The 52-week high is Rs 268 and the 52-week low is Rs 120.50 on BSE.