Small Cap Real Estate Stock Hit New 52-Week High After Board Approves Share Buy-Back, Rallies 4.86%

Real Estate sector Small cap company, Ashiana Housing Ltd. in a regulatory filing on Wednesday, Jul 12, 2023, informed the stock exchange that the Board Of Directors of the company approved the proposal to buy-back not exceeding 18,27,242 equity shares of face value of Rs 2 at a price of Rs. 301/- per equity share payable in cash for an aggregate amount not exceeding Rs. 55,00,00,000/-.

In a regulatory filing, Ashiana Housing said, "This is to inform you that in furtherance to our intimation dated 26 June 2023 and in terms of Regulation 30 and Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with SEBI Circular CIR/CFD/CMD/4/2015 dated 09" September 2015, the Board of Directors of Ashiana Housing Limited (hereinafter referred to as the "company") in its meeting held today i.e. on 12" July 2023, from 03:00 p.m. to 05:10 p.m. has unanimously approved the following:"

It added, "The proposal to buy-back not exceeding 18,27,242 (Eighteen Lakhs Twenty-Seven Thousand Two Hundred Forty-Two) equity shares of face value of Rs. 2 (representing 1.78% of the total number of equity shares in the paid-up share capital of the company) at a price of Rs. 301/- (Rupees Three Hundred and one) per equity share (hereinafter referred to as the "Buyback Price") payable in cash for an aggregate amount not exceeding Rs. 55,00,00,000/- (Rupees Fifty-five Crores) (hereinafter referred to as the "Buyback Size")."

Further added, "The said Buyback is proposed to be made from the existing shareholders of the company as on the record date i.e. 28 July 2023 (Friday) on a proportionate basis under the tender offer route in accordance with the provisions contained in the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018 ("Buyback Regulations") and the Companies Act, 2013, the Companies (Management and Administration) Rules, 2014, subject to all other applicable statutory approvals. The Buyback size does not include transaction costs viz brokerage, applicable taxes such as securities transaction tax, GST, stamp duty, any expenses incurred or to be incurred for the Buyback like filing fees, advisors/legal fees, public announcement publication expenses etc. and other incidental and related expenses. "

"The public announcement setting out the process, timelines and other requisite details will be released in due course in accordance with the Buyback Regulations."

"The Board of Directors has constituted a Buyback Committee to oversee and implement the Buyback and to do all such acts, deeds, matters and things as it may, in its absolute discretion, deem necessary, expedient, usual or proper in connection with the proposed Buyback," the company said in a regulatory filing.

Stock Movement

On Thursday, the shares of Ashiana Housing closed 4.86% higher at Rs 208.40 per share on BSE. The stock hit an intraday high of Rs 228.85 per share and an intraday low of Rs 207.40 per share. It hit the new 52-week high today i.e. Jul 13, 2023, at Rs 228.85 per share. Its traded its 52-week low on Dec 23, 2022, at Rs 130 per share. It has a market capitalisation of Rs 2,133.02 Crore.

The stock surged 7.73% in the past 1 week. It gave 10.85% return in 1 month and 18.71% in 3 months, respectively. In the past 1 year, it gave 47.12% positive return and in the past 2 years, it gave 31.03% positive return. In the past 3 years, it gave 226.13% positive return. In the past 5 years, it gave 63.90% positive return.

Disclaimer

The stock just highlights the Share Buy-Back and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.