R Systems gains 6 per cent on buyback plan
The board of directors of R Systems International approved the proposal for buyback of up to 36,90,000 equity shares at a price of Rs. 65 each.
The amount is payable in cash for an aggregate consideration not exceeding Rs. 23,98,50,000 from all the existing shareholders of the company who are eligible as per the record date February 1, 2019, Friday. The buyback will happen on a proportionate basis through the tender offer route. Motilal Oswal Investment Advisors is the manager for the buyback offer.
R Systems International's shareholding pattern for the quarter ended December 31, 2018 stands at Promoter & Promoter Group (51.17 per cent) and Public (48.83 per cent).
On January 9, 2019, the stock gained a whopping 17 per cent in anticipation of the board’s meeting to contemplate the buyback offer. However, during Tuesday’s trading session, the shares of the company rose as high as 6.6 per cent after the company announced the buyback. On Tuesday, the stock of the company opened at Rs. 54.10 per share and hit a high and low of Rs. 55.80 and Rs. 53.50, respectively. At 3:04 pm, the stock was trading at Rs. 53.70, up 2.58 per cent.