Rane Brake Lining jumps 9% as firm to mull share buyback

Mumbai: Shares of Rane Brake Lining jumped more than 9 per cent in Tuesday's early trade after the auto component maker said it will consider a proposal for buyback of shares on October 15.

At 9:39 am, Rane Brake Lining shares were up 9.35 per cent at Rs 635.40 on the BSE, while benchmark 30-share Sensex traded 0.22 per cent higher at 40,682.53 points.

“The exchange may please note that the Board of Directors at its meeting convened on October 15, 2020, is scheduled to inter-alia consider a proposal for buyback of equity shares of the company and matters connected thereto,” the company said in a filing with BSE after market hours on Monday.

The manufacturer of brake linings, disc pads and clutch facings, reported a net loss of about Rs 6.9 crore during the first quarter ended June 2020 due to a truncated period of operations against a net profit of Rs 7.3 crore a year ago.

The smallcap stock has gained nearly 12 per cent over the last one week but is still down 12.6 per cent for the year to date. Promoters have a 67 per cent stake in the firm, while mutual funds and foreign institutional investors do not hold any stake.