Jagran Prakashan plans another buybuck, shares surge 15%

The share prices soared to Rs 57.65 from Rs 43.85 a week ago

e4m by exchange4media Staff
Updated: Feb 24, 2021 9:31 AM
Jagran Prakashan

Jagran Prakashan is considering another buyback. The matter will be taken up in the next board meeting to be held on March 2.

In a notice to the exchanges, the publisher said, “Given that a meeting of the Board of Directors of Jagran Prakashan Limited ("Company") is scheduled to be held on Tuesday, March 02, 2021, inter-alia, to consider the proposal for buyback of the fully paid-up equity shares of the Company, as well as matters related/ incidental thereto.”

The share prices of the company surged more than 15% after the proposal was notified. The share prices touched Rs 57.65 on Monday. About a week back the prices were at Rs 43.85.

“When the share prices depress and the company feels that the prices are way lower or far below the actual intrinsic value of the company they do buybacks. It is also the way to reward shareholders. Jagran has been consistently doing buybacks in the last few years. In the last three to four years they would have done almost three buybacks providing supports to share prices and incentivizing investors,” explained a media expert.

The publishers of the highest circulated daily in the country, Dainik Jagran, Jagran Prakashan also has digital, radio, out-of-home (OOH) offerings.

Earlier this month, the company reported consolidated operating revenue of Rs 402.61 crore for the quarter ended 31st December 2020 as against Rs 552.98 crore in the same quarter of the previous fiscal amid a drop in ad and circulation revenue. Advertisement revenue declined to Rs 292.67 crore as against Rs 403.29 crore. Similarly, circulation revenue dropped to Rs 84.27 crore from Rs 107.47 crore. Other operating revenue stood at Rs 25.66 crore as against Rs 42.22 crore. Print-digital revenue came in at Rs 14.29 crore, up by 21.8% from Rs 11.73 crore.

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