OnMobile Global announced a buyback of its shares with the maximum buyback price as Rs 150 per share for a total aggregate amount not exceeding Rs 70 crore on Friday under the open market route. The company had received approval of its shareholders for the buyback earlier in February.
The last day of buyback would be August 19, 2016 or when the company completes the buyback offer deploying the amount equivalent to the buyback. The company has appointed Karvy Stock Broking Limited for purchases and settlement on account of the buyback.
Currently OnMobile’s stock is priced at Rs 107.10 per share, rising 3.48% than its previous closing.
As per the revised Sebi regulations of 2013, the obligatory minimum amount which a company is required to buy back from its existing shareholders has been increased to 50% of the offer size, against the earlier practice of 25%.
Sebi has also limited the buyback period to six months, from the time the approval has been sought from the board or shareholders, because companies usually did not utilize the entire period to carry out and perform the complete buyback.
Bengaluru-based OnMobile Global delivers music and entertainment services on mobile phones to customers globally. The company had posted weak earnings in the quarter ended in December 2015. Its Q3 consolidated net loss stood at Rs 7.6 crore against a profit of Rs 7.4 crore posted a year ago.
In January the company had announced that it had secured a three-year deal from Reliance Communications to provide Ring Back Tones (RBT) to its GSM and CDMA network customers across India. They also said that the company had bagged a three years renewal for its RBT offering with government-run BSNL in southern and eastern zones with an option for an additional year’s extension.