Just Dial, the company that provides local search for different services in India is looking to buyback Rs. 31 Lakh shares at Rs. 700 each. The operating income of the company fell by 32.4% in the last quarter, although it has recorded INR 83.3 crore that estimates about $11 million net profit in the quarter.
The employee cost of the company went up to 60.9%, even though Just Dial has downsized its sales department. Now the company is looking to buy back the Rs. 220 crores, which is $29 million worth equity shares in the upcoming month.
The news of this happening was confirmed while the company was announcing its financial results and the BSE listings.
The company released a statement in which they said, “The buyback is progressing on expected timelines, majority of the required approvals are in place, the record date was July 3, 2020, and the tender offer window is expected to open on August 4, 2020. The buyback is expected to be completed in another 4-5 weeks.”
The BSE filings said that the promoters of the company hold 33.43% of the company, individuals hold 11.03% shares of the company, domestic investors hold 19.86% shares while foreign investors hold 35.6% shares.
Apart from this, the company announced financial results till the end of June, in which it was mentioned that Just Dial recorded a net profit of INR 83.3 crores that mean $11 million which is a 45.5% hike from the last quarter.