Matrimony.com rallies 14% ahead of board meeting to consider share buyback; check details

In a stock exchange notification issued after the market hours on Monday, Matrimony.com informed that the company's board of directors will meet on September 5 to consider and approve the proposal for buyback of its fully paid-up equity shares.

Reacting to the development, Matrimony.com shares climbed as much as 13.5% in the opening trade on Tuesday to hit their 52-week high of ₹846.95 on the National Stock Exchange of India (NSE). By 1:00 pm, the stock had trimmed some of its gains to trade 10.64% higher at ₹825. The stock has jumped 22% in the past one month and is up over 40% year-to-date.

A share buyback occurs when a company uses excess cash to repurchase its own shares from the stock market. This is a way to reward shareholders, as the buyback reduces the supply of shares, essentially making the remaining shares more valuable relative to each other.

Matrimony.com had previously completed a share buyback in July 2022, when it had repurchased up to 6.52 lakh equity shares at a price of ₹1,150 apiece. This represented 2.85% of the company’s total paid-up equity share capital, with the total buyback worth being ₹75 crore.

In the June quarter, Matrimony.com’s revenue dropped over 2% to ₹120.6 crore compared to ₹123.3 crore in the year-ago period. Its profit after tax (PAT) had also slipped 1.4% to ₹13.97 crore in Q1FY25 compared to ₹14.17 crore in Q1FY24.

Matrimony.com offers matchmaking services through websites, mobile sites, and mobile apps complemented by a wide on-the-ground network in India. The company’s websites include BharatMatrimony, Community Matrimony, Assisted Matrimony, and EliteMatrimony.