Just Dial zooms 10% as board to consider share buyback proposal

Shares of Just Dial rallied 10 per cent to Rs 383 on the BSE on Tuesday after the company announced that it will consider share buyback proposal on Thursday.

“A meeting of the board of directors of Just Dial will be held on Thursday, April 30, 2020 to inter-alia consider and approve the proposal for buy-back of fully paid up equity shares of the company and matters necessary and incidental thereto,” Just Dial said in exchange filing on Monday after market hours.

The primary objective of a share buyback programme is to arrest the fall in the value of a stock by reducing the supply of the stock, which essentially pushes up the share price through a better price to earnings (P/E) multiple.