UPL stocks settle 3% high on share buyback proposal
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Shares of UPL rose sharply on Friday as the company announced that its Board will consider buyback of shares.
The company is into production of crop protection products, intermediates, specialty chemicals and other industrial chemicals.
"A meeting of the board of directors of the company is scheduled to be held on Wednesday, 2nd March, 2022 inter-alia to consider a proposal for buyback of fully paid-up equity shares of the Company," the company said in an exchange filing on Thursday apparently after the market hours.
After rising 5 per cent in the opening session, the shares pared some early gains and settled 3.4 per cent up at Rs 654.
Share buyback typically increases investors' confidence into the company and also, in a way, arrests the fall in the value of a stock by reducing the supply of the stock.
Since the start of 2022, the company's shares fell around 15 per cent.
