JM Financial believes Tips Music's Rs 44.5 crore share buyback through the open market route is likely to support the stock price. The brokerage has maintained its 'Buy' rating, citing the company's high profitability, healthy revenue and earnings growth outlook, and multiple growth and monetisation opportunities.
The music company on Wednesday announced that its board approved a plan to buy back up to 5.9 lakh fully paid-up equity shares at Rs 750 per share through the open market route, implying a premium of nearly 12% from the stock’s previous closing price. Notably, this is one of the first buybacks announced via the open market route after the system was reintroduced by SEBI from August 1 onwards.
