Shares of Nucleus Software Exports Ltd. gave nearly 30% return in just two days, with volumes surging 25 times after the company announced it was considering a buyback.
However, the stock fell over 6% the day details of the buyback were released, even as the price was set at a premium to its previous close.
Here is a look at the stock's volatility.
Stock Movement Before Buyback Details
On Aug. 19, Nucleus Software announced its management was considering a buyback post the market hours. The stock opened up 17% the next day and hit the 20% upper circuit. Volumes rose to 7,17,642 during the day.
Shares of the company jumped 8% on Aug. 21, with volumes at whopping 14,88,908 levels. This was just a day before details of the proposed buyback were made public.
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Stock Movement After Buyback Details
On Aug. 22, the company announced it would buy back 4.48 lakh equity shares at Rs 1,615 per share, for a total consideration of Rs 72.36 crore. This is 1.7% of the market capitalisation and 9.3% of its net worth.
Even though the buyback price implied a 6% upside to the previous close, on the same day the stock closed down 6.6%.
The acceptance ratio is at 1.72% of the total outstanding shares, according to NDTV Profit's calculations.
Nearly 30% Returns In Two Days
Between Aug. 20 and Aug. 21, the share price moved from Rs 1,175 to Rs 1,524, marking a 29.7% return in just two days. The volumes moved from 58,111 to 14,88,908 during the same time period.
Nucleus Software To Consider Buyback Plan: All You Need To Know. Read more on Markets by NDTV Profit.