Great Eastern Shipping Shares Rise Over 3% On First-Ever Share Buyback Announcement
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Great Eastern Shipping Company Ltd shares gained over 3% in early trade on Friday after the company announced its first-ever share buyback worth up to ₹900 crore, priced at a nearly 16% premium to the previous close. Read ahead to know more.
Great Eastern Shipping Company Ltd has unveiled its first-ever share buyback worth up to ₹900 crore.
The board has approved the repurchase of up to 58.82 lakh equity shares, representing 4.12% of the company's total paid-up equity capital, through the open market route, with the maximum buyback price fixed at ₹1,530 per share, a premium of nearly 16% to Thursday's closing price of ₹1,319.
Great Eastern Shipping Company shares rose over 3% in early trade today after the company board approved the buyback. At 12:03 PM, the stock was trading at ₹1,337.50, up 1.54% on the National Stock Exchange (NSE).
Structure Of The Buyback
Under the open market mechanism, Great Eastern Shipping will purchase its own shares through the stock exchanges over a period of time, subject to applicable regulatory limits.
If the company repurchases the maximum permissible quantity at the ceiling price, the buyback would still account for less than 25% of its existing paid-up equity capital.
According to the latest shareholding data of the company, the promoter and promoter group have a 30.07% stake while foreign investors such as foreign portfolio investors (FPIs), foreign institutional investors (FIIs), non-resident Indians (NRIs), foreign banks and overseas corporate bodies together have a 29.83% stake.
Mutual funds, financial institutions, banks, alternative investment funds (AIFs), non-banking financial companies (NBFCs) and insurance companies together account for 12.49%. The remaining 27.60% is held by other shareholders, which include individuals, corporates and trusts.
Strong Q1 Performance Behind The Announcement
The buyback follows a strong set of June quarter results, with consolidated net profit for FY27 more than doubling to ₹1,309 crore, compared with ₹505 crore in the same quarter last year.
Revenue from operations rose 66.9% year-on-year to ₹2,005.4 crore from ₹1,201.5 crore, while earnings before interest, taxes, depreciation, and amortisation (EBITDA) nearly doubled to ₹1,337.7 crore from ₹642.8 crore, pushing the EBITDA margin up to 66.7% from 53.5% a year earlier.
The shipping segment remained the primary revenue driver, with revenue from shipping operations rising to ₹1,890.97 crore from ₹994.21 crore in the year-ago period, while the offshore services business also posted growth, with revenue increasing to ₹406.02 crore from ₹350.41 crore over the same period.
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This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.
When she's not decoding markets, she trades charts for canvases, chasing art, painting, and architecture across cities she's yet to explore.
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