The board of Suprajit Engineering, along with its June quarter results on Wednesday, has also announced a buyback of its equity shares.

The company intends to buyback up to 15 lakh fully paid-up shares having a face value of ₹1 each and amount to 1.08% of the company’s total equity.

Buyback price has been fixed as ₹750 per share, which is a premium of 38% to Suprajit Engineering’s closing price on Wednesday.

This is the second instance that Suprajit Engineering is carrying out a buyback of shares, the first being in 2021.

Earlier, the company has issued bonus shares in the ratio of 1:1 in 2004 and 2010 and also split its equity share of ₹5 into five equity shares of ₹1 in the same year.

The buyback will be carried out via the tender offer route and will involve a total consideration of ₹112.5 crore.

August 27, 2024 has been fixed as the record date for the share buyback by Suprajit Engineering.

A tender offer share buyback means that the company will have to repurchase shares at the pre-determined price without any variation.

More than ten companies have announced share buybacks till the first week of August, just days after tax changes were proposed by Finance Minister Nirmala Sitharaman during her Budget 2024 speech on July 23.

The income received on the buyback of equity shares will now be taxed in the hands of the shareholder and not the company as was the case earlier.

Companies like Indus Towers, Savita Oil, AIA Engineering, Navneet Education among others have already announced their respective share buybacks.

Suprajit Engineering reported a 15.1% growth in its June quarter net profit to ₹38.1 crore, while revenue increased by 8.1% from last year.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) increased by 21% year-on-year to ₹86.3 crore, while margins expanded by 120 basis points to 11.7%.

Shares of Suprajit Engineering ended 4% higher on Wednesday, witnessing a sharp spike towards the close of trade at ₹543.50. The stock has risen 32% so far in 2024.