Shares of Nucleus Software Exports Ltd. fell by 7% after reaching a day’s high of Rs 1,526.95 on 22nd August, despite the company approving a Rs 72.4 crore equity share buyback.

The company will buy back up to 4.48 lakh equity shares with a face value of Rs 10 each, representing 1.67% of its total equity.

The buyback price is set at Rs 1,615 per share, which is 6% higher than the company’s current market price.

The company has set 3rd September 2024 as the record date for its share buyback but has not yet announced a specific timeline for the buyback process.

This buyback will use the “tender offer” method, where the company will repurchase shares at a fixed price.

This will be Nucleus Software’s third share buyback since 2017 and 2021.

The company’s last share buyback occurred in 2021, with shares repurchased at Rs 700 each.

Since 23rd July, about 17 companies have announced equity share buybacks, compared to 16 companies earlier this year, ahead of the budget.

This change follows Budget 2024, where income from share buybacks will now be taxed in the hands of shareholders, not the company, as stated by Union FM Nirmala Sitharaman.

The stock has increased by just 1% in 2024 but has gained 40% over the past 12 months.

At 3:30 PM, the shares of Nucleus Software closed 6.04% lower at Rs 1,432 on NSE.

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