OnMobile Global has completed the buyback on July 4th 2012, buying back a total of 4 million shares, amounting to Rs 23,76,20,381, approximately 95.1% of the maximum buyback size of Rs 25 crore. Details here. Some stats/calculations:
– The buyback is four times the minimum buyback of 1 million shares, and equal to the maximum limit set
– The company had set a maximum price for the buyback at Rs 85 per share, and the average price per share is around Rs 59.40, approximately 30.11% cheaper than the maximum price.
– At present the company has a market cap of Rs 408 crore, and a free float of Rs 224 crore.
– At the close of trading yesterday, OnMobile was priced at Rs 33.75, at a discount of around 43.19% to the average buyback price.
– The week before the buyback was announced, OnMobile had closed at Rs 63.35 on the BSE, and Rs 63.15 on the NSE, and the current share price is at a 46.72% discount to when the buyback was announced.
The share price has risen 2.67% to Rs 34.65 since trading opened this morning.
The buyback should have reduced liquidity for the stock, but things have been volative, and the newsflow has meant that on the 2nd of July 2012, the share saw its lowest price of Rs 28.75. OnMobile had recently denied that its CEO Arvind Rao was under investigation for misappropriation of funds. There is a re-organization in progress, with Rao now given the mandate of focusing on international business, and an operations committee looking at the India business.