wordpress blog stats
Connect with us

Hi, what are you looking for?

Onmobile Global Board Approves Share Buyback

Update: We’re going to interview OnMobile CEO Arvind Rao on Monday, the 12th of September. Many issues have been raised in the comments to this post. If you have any specific questions for him on the buyback, please mail them to us at nikhil@medianama.com

September 5th 2011: OnMobile Global Ltd, which ended the last week with its shares priced at Rs 63.35 on the BSE, and Rs 63.15 on the NSE, has approved a buyback of shares for an amount not more than Rs 25 crore, at a maximum of Rs 85 per share, and buying back a maximum of 4 million shares. A few points to keep in mind:

– The share’s 52 week high on the BSE was Rs 200, on 6th October 2010, and its 52 week low was Rs 54.10 as recently as 19th August 2011.
– The IPO, in Feb 2008, was priced at Rs 440. However, in March 2011, it approved a 1:1 bonus, making the stock more liquid. The current price should probably be seen in comparison with Rs 220, not Rs 440.
– The company states that “The maximum amount to be deployed in the Buy-back is less than 10% of the total paid-up equity capital and free reserves of the Company as on March 31, 2011.”

We’re not sure of what the intent behind the buyback is, but given that the company made the share more liquid with a 1:1 bonus in March, a buyback would reduce liquidity.

The announcement:
OnMobile Global Ltd has informed BSE that the Board of Directors of the Company at its meeting held on September 03, 2011, has approved the Buy-back of Company’s own fully paid equity shares of Rs. 10/- each for an amount not exceeding Rs. 25 Crores at the prevailing market prices from open market through stock exchanges subject to a price not exceeding Rs. 85/- per equity share and subject to a maximum bf 40,00,000 Equity shares (hereinafter referred to as “Buy-back”) in accordance with the provisions of Section 77A, 77AA and 77B of the Companies Act 1956 and the SEBI (Buy-Back of Securities) Regulations 1998. The maximum amount to be deployed in the Buy-back is less than 10% of the total paid-up equity capital and free reserves of the Company as on March 31, 2011. The Company will be issuing a Public Notice / Public Announcement in accordance with the SEBI (Buy-Back of Securities) Regulations 1998 in due course.

Our recent OnMobile Global coverage:
OnMobile Q1-FY12 Call: Would They Do m-Commerce On Voice? 3G, OnCloud, Telefonica, Dilithium
OnMobile Results: Q1-FY12 Profit Down 28%

You May Also Like

News

Mobile entertainment company OnMobile Global has acquired Appland AB, a Sweden-based mobile distribution and monetisation company for an undisclosed amount. A VCCircle report states...

News

Mobile VAS and ringback tone company OnMobile Global has signed a 3 year ringback tone and reverse ringback tone deal with Bangladesh-based telecom company...

News

Rajiv Pancholy, managing director and CEO of OnMobile Global has resigned from the company. Pancholy will stay on as CEO till February 28 but...

News

Onmobile Global returned to profitability as the company reported a net profit after tax of Rs 1.26 crore for the quarter ended September 30th 2015....

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2018 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to Daily Newsletter

    © 2008-2018 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ