AIA Engineering approves first-ever share buyback amid market gains

7 Aug 2024 , 03:48 PM

Shares of AIA Engineering Ltd. declined from their earlier highs after the board approved a buyback of its equity shares. AIA Engineering will execute the buyback through the tender offer route, meaning the company will repurchase shares at a predetermined price. This marks the first buyback ever undertaken by AIA Engineering.

By the first week of August, at least ten companies have announced or are expected to announce share buybacks following tax changes proposed by Finance Minister Nirmala Sitharaman in her Budget 2024 speech on July 23.

As of 3:38 PM on August 07, 2024, shares of AIA Engineering Ltd. are trading at ₹4,481, reflecting a 0.39% gain from the previous close. Over the past year, AIA Engineering Ltd. shares have seen a 26% gain, with a 21% increase since the beginning of this year.

Income from the buyback of equity shares will now be taxed in the hands of shareholders, a change from the previous practice where the company was taxed.

AIA Engineering Ltd., an ISO 9001:2015 certified company, specializes in the design, development, production, installation, and servicing of high chromium wear-resistant parts for grinding equipment used in the cement, mining, and quarry industries.

The company offers custom-designed solutions in ideal metallurgy for specific applications, along with process optimization services based on technical assessments of customers’ needs.

With over 40 years of legacy in India and an international marketing arm, Vega Industries, AIA Engineering has set benchmarks in quality, services, and innovation, earning a strong reputation as a global solution provider.