This debt-free small-cap stock sets a record date for stock buybacks: Are you an owner?

With a market valuation of Rs. 1,506.01 crores and involvement in the financial services sector, CARE Ratings Ltd. is a small capitalization company. One of the leading credit rating organizations in India, the company has been in operation for over three decades. Several rating categories are covered by the company, including manufacturing, infrastructure, financial sector, banking, and non-financial services, among others. Wholly owned subsidiaries of CareEdge Ratings (CARE Ratings Ltd.) are CARE Advisory, Research & Training Ltd. and CARE Risk Solutions Pvt Ltd. According to data from Value Research, CARE Ratings currently holds debt-free status. For the purpose of repurchasing shares, the company’s board of directors announced the record date.

The company today said in a regulatory filing that “This refers to our prior notice dated July 20, 2022 advising that the board of directors has approved the company’s proposal to repurchase up to 23,68,000 (Twenty Three Lakhs Sixty Eight thousand only) fully paid shares of the company with a par value of Rs.10/- (only rupees ten) each at a price of Rs.515/- (only rupees five hundred and fifteen) per share (the “Redemption”) subject to the approval of the members of the Corporation. The members of the Corporation have approved the redemption by passing a special resolution by postal ballot. Pursuant to Regulation 42 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended and Regulation 9(i) of the Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018, as amended, the Company has fixed Wednesday 14 September 2022 as the date of ‘record ent for the purposes of determining the right and the names of the shareholders who will be eligible to participate in the redemption and to whom the letter of offer and the form of offer will be sent in connection with the redemption.”

On Friday, shares of CARE Ratings Ltd closed at 509.00 each, up 0.52% from the previous close on the NSE. Over the past year the stock has fallen 26.59% and on a YTD basis the stock has fallen 17.49% so far in 2022. On the NSE the stock had hit a high of 52 weeks of 744.00 on (15-Sept-2021) and a 52 week low of 403.00 on (May 19, 2022) indicating that at the current market price the stock is trading 31.58% below the high and 26.30% above the low.

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