Symphony Approves Share Buyback at Over 100% Premium – Hits Upper Circuit

Symphony Ltd., a leading manufacturer of consumer durables, announced a significant buyback of equity shares along with its June quarter results on Tuesday. The company has approved the repurchase of 2.85 lakh equity shares, constituting 0.41% of its total equity. Each share carries a face value of Rs 2.

Share Buyback Details

Symphony has set the buyback price at Rs 2,500 per share, representing a premium of over 100% from Monday’s closing price. Following this announcement, Symphony’s stock surged, hitting the upper circuit limit of the day at 20%. This marked the sharpest single-day rise for the stock since 2021 and recorded the highest ever single-day volume in the company’s history.

Buyback Mechanism

The Rs 71.4 crore buyback will be conducted via the “tender offer” route, allowing shareholders to sell their shares at a predetermined price. This marks Symphony’s second buyback, following a similar initiative in 2023. The record date has not been finalized yet, however, there is an anticipation that it would be before October 01. 

Stellar June Quarter Performance

Alongside the buyback announcement, Symphony reported impressive June quarter results. The net profit soared to Rs 88 crore, up from Rs 24 crore in the same period last year. Revenue for the quarter increased by 76%, reaching Rs 531 crore. The company also reported significant improvements in its Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA), which rose to Rs 111 crore from Rs 26 crore in the previous year.

Enhanced Profit Margins

The EBITDA margin for the quarter jumped to 20.9%, a substantial increase from 8.6% during the same period last year. This robust financial performance underscores Symphony’s strong operational efficiency and market position.

In summary, Symphony’s strategic buyback and stellar financial results have propelled the company to new heights, reflecting its commitment to enhancing shareholder value.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.