Paramatrix Technologies Announces Strategic Equity Buy-back

Paramatrix Technologies Limited unveils a strategic buy-back plan to enhance shareholder value and optimize capital. The initiative, demonstrating confidence in the company's growth, excludes promoter participation, affirming their commitment to long-term vision as the company seeks to repurchase shares and maintain a robust financial position.

Paramatrix Technologies Limited, with the ticker symbol (NSE: PARAMATRIX), has revealed plans to embark on a strategic buy-back of equity shares. This initiative signals the board's belief in the company's strong fundamentals and promising growth prospects. The move is intended to optimize the firm's capital structure and enhance shareholder value.

According to the announcement, Paramatrix plans to repurchase up to 4,60,800 fully paid-up equity shares, equating to 5.27% and 4% of the fully paid-up equity shares as of March 31, 2024, and March 31, 2025, respectively. The buy-back will proceed via the Tender Offer Route at a valuation of Rs130 per share, with a total expenditure of Rs 5.99 crore, excluding additional costs. Notably, the promoters have chosen not to participate, underscoring their trust in the company's strategic path and potential for future growth.

The buy-back will be financed through the company's Free Reserves and Securities Premium, representing a significant percentage of equity share capital and free reserves based on the audited financial statements for the fiscal year ending March 31, 2024. Founder and CEO Mukesh Thumar emphasized the decision reflects their confidence in the company's fundamentals and dedication to creating sustained value while maintaining a healthy balance sheet.

(With inputs from agencies.)