Buyback alert! Onward Tech announces Rs 180 crore share buyback at 20% premium

Synopsis

Onward Technologies has approved a Rs 180 crore share buyback, repurchasing nearly 5.49 lakh shares at Rs 328 apiece, a 20% premium. Promoters will not participate in this first-ever buyback, with May 18 set as the record date. The company appointed Centrum Broking as the buyback manager.

Software outsourcing company Onward Technologies on Tuesday announced that its board of directors has approved the proposal to buy back nearly 5.49 lakh shares at a buyback price of Rs 328 apiece, implying a premium of nearly 20% from the previous closing price.

The company announced that the Rs 180 crore buyback will be done through the tender route on a proportionate basis for 2.41% of its total stake. It further said that promoters and promoter group will not participate in the buyback.

Record date for Onward Tech’s buyback

Onward Technologies set May 18 (Monday) as the record date to determine the eligibility of shareholders who can tender shares as part of the buyback. The company has constituted a ‘Buyback committee’ in this matter, and appointed Centrum Broking as the manager of the buyback. Notably, this will be Onward Tech’s first-ever share buyback.

Buyback of shares refers to a corporate action where a company repurchases its own shares from existing shareholders, mostly at a premium to the market price. Prior to the buyback, promoters and promoter group held 39% stake in the company, while public held nearly 60% stake.

Onward Tech share price

Onward Tech shares sharply recovered all losses to trade in the green immediately after the buyback announcement, but soon erased all gains and slipped into the red on Tuesday, trading at Rs 266 apiece on NSE in the afternoon on Tuesday.

The shares of the company have gained more than 9% in one week, nearly 6% in one month and are down 10% in 2026 so far. In the longer term, Onward Tech shares jumped 8% in one year and 122% in five years, but fell 36% in three years.

The company currently has a market capitalisation of more than Rs 607 crore. The stock’s P/E ratio stands at a little over 14.

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