Lovable Lingerie surges 14% as company mulls share buyback

span.p-content div[id^=div-gpt] { line-height: 0px; font-size: 0px;} surged 14% to Rs 256 on BSE in the early morning trade after the company said its board will meet on Friday, October 6, 2017 to consider the proposal for buyback of equity shares.

So far in 2017, the stock has underperformed the market by falling 4% as compared to 17% rise in the S&P BSE Sensex till Thursday.

In past nine months, the board of directors of more than two dozen companies has approved a proposal.

The primary objective of a programme is to arrest the fall in the value of a stock by reducing the supply of the stock, which essentially pushes up the share price through a better P/E multiple. The other objective is to improve earnings per share (since the same dividend amount is now distributed among fewer shares).

At 9:24 am, the stock was up 12% at Rs 251 on BSE as compared to 0.34% rise in the S&P BSE Sensex. The trading volumes on the counter jumped multiple-fold with a combined 478,957 shares changed hands on the NSE and BSE so far.

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