The buy-back price is at a 17% premium to the shares closing price of Rs 196.45 on Friday. The stock opened the day at Rs 200 and hit an intra-day high of Rs 211.70 before ending the day at Rs 208.75. It was the biggest gainer among the Sensex pack with 14.48 lakh shares changing hands generating a turnover of Rs 30.19 crore.
The buy-back of equity shares is proposed to effectively utilise the surplus cash and make the balance sheet leaner and more efficient to improve returns. HUL has registered a 29.56% growth in net profit to Rs 493.08 crore in the quarter ended June 2007 from Rs 380.59 crore in the quarter ended June 2006.
According to dealers the spurt in HUL stock price on Monday was mainly on account of excellent first quarter results posted by the company and the buy back announcement acted as a catalyst.
The company has one long year to complete the buy back process and the price at which it will buy back the shares indicates that HUL stock is not expected to fall below that level during the commencement of the period.