Matrimony.com shares fall 7% from day's high after buyback price fails to enthuse Street

Shares of Matrimony.com declined as much as 7% from day's high on Monday, December 15, after the company's board approved a buyback of equity shares.

Matrimony.com will buyback shares worth up to ₹58.50 crore at a price not exceeding ₹655 apiece, which is at a 25% premium to the current market levels.



The company plans to buyback up to 8.93 lakh equity shares of face value ₹5 each from existing shareholders.

The company also intends to buyback the shares through the "tender offer" route, which means that the buyback price will remain fixed and will not change. To know more about the difference between the tender offer and an open market buyback,

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The record date for the share buyback will be intimated in due course, the company said in an exchange filing

This is the third share buyback that the company has announced in the last three years. Its previous two buybacks came in 2022 and 2024.

Back in September 2024, Matrimony.com had announced a ₹72 crore share buyback. It repurchased 7.02 lakh equity shares between October 30 to November 6 last year at a price of ₹1,025 per share. The buyback price was at a 27% premium to the previous day's closing price on September 5, when the buyback announcement was made.

Matrimony.com had announced its first share buyback in May 2022, where the company had announced a ₹75 crore share buyback at a price of ₹1,150 per share. The buyback was announced at a premium of 71% to the previous day's closing price.

In either of these instances, Matrimony.com shares have not managed to test their buyback price. The all-time high that the stock had hit was back in February 2021, when the stock had hit a high of ₹1,242, well before the buybacks were announced.

Shares of Matrimony.com are trading 5.44% lower on Monday at ₹516.30. The stock is down 22% so far this year.