SIS share rises over 9% as firm to buy back shares worth Rs 100 crore

Stock of one of the leading private security companies SIS rose over 8% in trade today after the firm announced a buyback of shares  worth Rs 100 crore.

SIS share opened with a gain of 3.3% at Rs 444 today against previous close of Rs 425.75 on BSE. The stock touched an intraday high of Rs 465, rising 9.12% on BSE. SIS share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The mid cap share was trading 2.59% higher at Rs 437.20 on BSE in afternoon session. Market cap of the firm rose to Rs 6,488 crore on BSE.     

The firm will buy back a total of 18,18,181 shares at a price of Rs 550 apiece. The shares being bought represent 1.23 percent of the total number of fully paid-up equity shares, the company said in a press release.

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The amount of Rs 550 being offered under the buyback proposal is 31 percent higher than the last closing price.

SIS recorded cash flows in excess of Rs 550 crore in the first three quarters of the financial year 2021-22.

"The company had a very strong year for cash flows, generating over Rs 550 crore of operating cash flow during the first nine months of FY21 and this buyback is intended to reward shareholders who have supported SIS over the years," it said.

Largely unaffected by the pandemic in India, SIS continued to operate in 630 districts of the country and cater to over 7,000 clients. The company "remains among the top 5 private sector employers in the country", the statement added.