SIS Ltd’s board approves share buyback. Details inside

The share buyback is less than 10% of the aggregate of the fully paid-up equity share capital, the company informed in an exchange filing, adding that the record date (Eligible Shareholders) to be subsequently decided by the board.

The process, record date, timelines and other requisite details of the Buyback shall be set out in the public announcement and the letter of offer, in accordance with the buyback regulations, the company said. 

The buyback offer is subject to the approval of the shareholders by way of a special resolution through postal ballot through remote electronic voting only and all other applicable statutory approvals.

A share buyback, also known as share repurchase, is a corporate action to buy back its own outstanding shares from its existing shareholders usually at a premium to the prevailing market price. It can be an alternative tax-efficient way to return money to shareholders. Share buybacks reduce the number of shares in circulation, which can increase the share value and the earnings per share (EPS).

Multinational and essential services market player SIS Ltd reported a net profit of ₹97 crore for the fourth quarter of 2021-22. The company, which is also into the cash logistics business, had a profit of ₹102 crore in the corresponding January-March quarter of the previous financial year. Its revenue for the quarter increased by 8% at ₹2,648 crore compared to ₹2,445.2 crore in the same period a year ago.

For the full financial year 2021-22, the company’s net profit declined by 11% to ₹326 crore from ₹367 crore in the previous fiscal. However, revenue for the fiscal was up 10 per cent at ₹10,059 crore from ₹9,127 crore in the previous fiscal.

SIS shares are up more than 6% in a year’s period, whereas the stock is almost flat in 2022 (year-to-date or YTD) so far.

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