Stock of Cosmo First gained over 2% today after board of the firm cleared buyback of shares worth Rs 108-crore from existing shareholders. The company will buy back 10.09 lakh shares having a face value of Rs 10 each representing 3.70 per cent of the total paid-up equity share capital of the company as of March 31, 2022.
Cosmo First stock gained 2.28 per cent to Rs 847 against the previous close of Rs 828.30 on BSE. The stock opened higher at Rs 831.90 on BSE. Cosmo First stock has gained 21% in the last six sessions on the buzz of share buyback.
The stock is trading higher than 5 day, 20 day and 50 day moving averages but lower than 100 day and 200 day moving averages.
In a week, the stock has risen 21.66%. However, in a year, the stock has fallen 8 per cent and lost 8.54% in 2022.
Total 9133 shares of the firm changed hands amounting to a turnover of Rs 76.48 lakh on BSE. The market cap of the firm rose to Rs 2,300 crore.
The stock hit its 52-week high of Rs 1427.38 on April 11, 2022 and a 52-week low of Rs 657.95 on November 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 as on November 28, 2022.
The board has fixed December 14, 2022 as record date for the purpose of ascertaining the eligibility of the shareholders for the buyback.
The firm reported a 24.74 per cent fall in Q2 net profit to Rs 73.23 crore against Rs 97.30 crore profit in the corresponding quarter of the previous fiscal. However, sales rose 2.45% to Rs 777.94 crore in the September quarter against Rs 759.37 crore in the corresponding quarter of the previous fiscal.
Cosmo First Limited, formerly Cosmo Films Limited, is a manufacturer of semi-finished products of plastics. The company’s products comprise biaxially oriented polypropylene films, thermal films and coated films. It operates through two segments: Packaging Films and Others. The company has manufacturing facilities spread across India and Korea.
Meanwhile, Sensex fell 233 points to 63,050 and Nifty lost 75 points to 18,736 in early trade. The fall in market comes after eight straight sessions of gains.