Edit this postIt has come to the light that Essel Group company Zee Entertainment Enterprises Ltd (ZEEL) will be undertaking a share buyback programme that will entail an outgo of up to Rs 700 crore. The company said buyback of its fully paid-up equity shares of Re 1 face value each will be at a price not exceeding Rs 126 per equity share. The company proposes to buyback a minimum of 1.26 crore equity shares from existing shareholders other than the promoters, it said. "The maximum buyback size is within 25 per cent of the aggregate of the company's paid-up equity capital and free reserves as on March 31, 2010," the filing added.
We had already written earlier that ZEEL has undertaken a log change which is good for the stock. Presently stock is in short term downtrend and wait and let stock give the buy signal before entering in the stock. Thus due to buyback we can expect the stock price to hover near 126 levels in the near term.
