Shares of Godawari Power and Ispat rose on March 16 after the company announced it might consider a share buyback at its March 18 board meeting. If approved, it would be the steelmaker’s first-ever share buyback plan.

Shares of Godawari Power and Ispat were up 2.54% at Rs 383 on the National Stock Exchange at 12:49 pm. The stock also hit an intraday high of Rs 386.65.

A total of 600,000 shares of the company have changed hands on exchanges so far, compared with a one-month daily average of 300,000 shares. Investors also focused on announcements related to buyback details, such as record dates, buyback prices and sizes.

During a buyback, a company repurchases stock from shareholders, usually at a premium to the prevailing market price. Buybacks are another tax-efficient way to return money to shareholders and are designed to help stem a decline in stock value.

The stock has been under pressure for much of 2022 due to lower profits but has managed to stage some recovery in recent months, buoyed by an improved outlook from the reopening of China.