Multibagger smallcap falls 2% after announcing Rs 190 crore share buyback

Shares of Triveni Turbine in Thursday's trading session fell more than 2% to the day’s low of Rs 276.70 after announcing a Rs 190 crore share buyback.

The company on Wednesday in its board meeting, other than the second quarterly results, approved a share buyback of Rs 190 crore at a price of Rs 350. This, in comparison to the previous closing of Rs 277.6, translates into a premium of around 26%.

“The board approved the proposal for buyback of fully paid up equity shares of the company having a face value of Re 1 through the "tender offer" route at a price of Rs 350 for an aggregate amount not exceeding Rs 190 crore," the company said in an exchange filing.

The resultant equity shares to be bought back at the buyback offer price shall be up to 54,28,571 equity shares, representing 1.68% of the total paid-up equity capital of the company as on March 31, 2022,” said the company’s filing with the exchange.

The buyback offer size represents 24.79% and 22.86% of the aggregate of the company's fully paid-up equity capital and free reserves as per the standalone and consolidated audited financial statements of the company, respectively, for the financial year ended March 31, 2022.

Triveni Turbine is a multibagger stock with a 3-year return of 170%, while on a YTD basis it has risen 49%.

The company is a leading industrial steam turbine manufacturer, with a dominant market share of over 60% in India.