- Aurionpro is a Mumbai-based offers technology to banks looking to digitise their services.
- The board of Aurionpro has approved a share buyback at a maximum price of ₹185.
- The share repurchase price is nearly 30% above Monday's closing price.
Aurionpro, which had a market cap of ₹3.3 billion on Monday (March 25), decided to buy back a part of its shares from its investors at a maximum price of ₹185 a share, that's nearly 30% over the latest closing price.
The promoters' stake will rise to nearly 28% after the buyback, and the public shareholding will fall to about 72% after the share buy back, a company filing with the Bombay Stock Exchange said.
Companies buys their own outstanding shares floating in the market to increase the value of remaining shares available by reducing the supply or to prevent other shareholders from taking a controlling stake. It also reflects confidence of the promoters in the company's business.
What does it do
69% of the company's revenue comes from banks looking to digitise their business and the remaining comes from smart city projects undertaken by the Indian government. It is currently executing a project to create a 3D map for Rajasthan's capital city, Jaipur, according to a report by Batlivala and Karani in December 2018.
However, Aurionpro's flagship product is ISLA, which is a propreitary application that protects from web-based malware and
The management expects to year to March 2019 with about 20% growth in its digital business, hitting a revenue of ₹3000 million from this vertical alone, with a profit margin of 30% before interest, taxes, depreciation and amortisation, the Batlivala and Karani report said.