India's Route Mobile falls 7% as open market buyback, size disappoint

Route Mobile

29/06/2022 08:30

** Shares of IT services firm  ROUT.NS  tumble as much as
6.8% to 1,236.30 rupees, post their biggest intraday pct loss
since June 14 
    ** Co said https://bit.ly/3OLiHEv late on Tuesday its board
of directors approved buyback of shares with face value of 10
rupees each for up to 1,700 rupees apiece which would be worth
up to 1.20 bln rupees ($15.21 mln) 
    ** ROUT said buyback of shares would be in cash from
shareholders, excluding the ones in control of co via open
market route through stock exchange mechanism
    ** Size of the buyback, as well as the open market route,
disappointed investors, said Prashanth Tapse, vice president
(research), Mehta Equities
    ** In open market buybacks, there is no commitment from
management as they could complete the buyback at the current
market rate also. Shareholders are not excited - Tapse
    ** About 799,000 shares change hands by 0713 GMT, 1.3 times
their 30-day avg of 612,378
    ** Up to last close, ROUT had fallen 25.6% this year     

($1 = 78.9080 Indian rupees)

 (Reporting by Nallur Sethuraman in Bengaluru)
 ((Sethuraman.NR@thomsonreuters.com; (+91 8061822737); Reuters
Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))