Matrimony.com rise over 2% on board nod for ₹72 crore share buyback proposal at 26.9% premium

Online matchmaking services provider Matrimony.com shares gained up to 2.6% on Friday, September 6, after the company’s board cleared a proposal to buy back equity shares worth ₹72 crore from existing shareholders.

The company informed the stock exchanges in a filing that its board in a meeting held on September 5, 2024, unanimously approved the proposal to buy back 7,02,439 fully paid-up equity shares of a face value ₹5 each of the company.

The share buyback programme will be worth up to ₹72 crore, according to the stock exchange filing.

Shares of the company rose by 2.61% to hit an intraday high of ₹828.8 apiece after the announcement, extending the winning streak to a fourth day. The stock has rallied more than 10% in the four straight days of gains.

Shares were trading 0.98% higher at ₹815.6 apiece on the NSE at 9:25 am.

Matrimony to buy back shares at ₹1,025 per equity share

The company will buy back shares at a price of ₹1,025 per equity share, which is at a 27% premium to Thursday’s closing price. The buyback size of over 7 lakh equity shares represented 24.85% of the total equity capital of Matrimony.com.

The buyback plan will be executed through the “tender offer” route in accordance with the SEBI (BuyBack of Securities) Regulations, 2018. Matrimony.com will announce the record date for the buyback later.

The company stated that 15% of the equity shares to be bought back will be reserved for small shareholders, as per regulatory requirements.

The company said promoters and members of the Promoter Group will not participate in the proposed buyback.

As of August 30, 2024, promoters and promoter group companies hold a 51.59% stake in matrimony.com. Public shareholders hold 48.41% stake.

Earlier in June 2022, the company had announced a buyback programme at a price of ₹1,150 per equity share with an offer size of ₹75 crore.

The company repurchased 6.5 lakh equity shares and were bought back at a 49.21% premium over the then-closing price of ₹770.7 apiece.