Jagran Prakashan Shares Surge As Board To Meet To Consider Buyback
Jagran Prakashan shares surged over 6 per cent to an intraday high of Rs 184.65 on Friday after the Kanpur-based media company said that its board will meet on January 5 to consider a proposal of share buyback.
In a release to Bombay Stock Exchange, the company said: "Meeting of the board of directors of Jagran Prakashan is scheduled to be held on Thursday, 5th January, 2017 inter-alia to consider the proposal for buy-back of shares."
Trading volumes surged in Jagran Prakashan shares. As of 11.30 a.m., 34,000 shares changed hand on the BSE compared to its two week average volume of 19,000.
Investor community consider buyback of shares by a company positively as it shows the management's confidence in their own business or when they feel that the shares are under-priced in market.
Including today's gains, Jagran Prakashan shares have surged over 12 per cent in this year so far compared to nearly 2 per cent gain in the broader Sensex.
Jagran Prakashan, the publisher of Hindi daily Dainik Jagran, had reported 14.23 per cent increase in standalone net profit at Rs 75.45 crore for the quarter ended on September 30, 2016. Its total income from operations during the quarter was Rs 459 crore, up 6.28 per cent, against Rs 431.87 crore in the year-ago period, Jagran Prakashan said in a BSE filing.
As of 11.36 a.m., Jagran Prakashan shares traded 3.40 per cent higher at Rs 179.40 apiece compared to 0.84 per cent gain in the broader Sensex.