Shares of Nucleus Software Exports Ltd. gave nearly 30% return in just two days, with volumes surging 25 times after the company announced it was considering a buyback.
However, the stock fell over 6% the day details of the buyback were released, even as the price was set at a premium to its previous close.
Here is a look at the stock's volatility.
Stock Movement Before Buyback Details
On Aug. 19, Nucleus Software announced its management was considering a buyback post the market hours. The stock opened up 17% the next day and hit the 20% upper circuit. Volumes rose to 7,17,642 during the day.
Shares of the company jumped 8% on Aug. 21, with volumes at whopping 14,88,908 levels. This was just a day before details of the proposed buyback were made public.
Stock Movement After Buyback Details
On Aug. 22, the company announced it would buy back 4.48 lakh equity shares at Rs 1,615 per share, for a total consideration of Rs 72.36 crore. This is 1.7% of the market capitalisation and 9.3% of its net worth.
Even though the buyback price implied a 6% upside to the previous close, on the same day the stock closed down 6.6%.
The acceptance ratio is at 1.72% of the total outstanding shares, according to NDTV Profit's calculations.
Nearly 30% Returns In Two Days
Between Aug. 20 and Aug. 21, the share price moved from Rs 1,175 to Rs 1,524, marking a 29.7% return in just two days. The volumes moved from 58,111 to 14,88,908 during the same time period.
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