The board of Matrimony.com has approved a share buyback of Rs 72 crore at a price of Rs 1,025 per share, which is a 27.5% premium over Thursday’s closing price. Following the announcement, the stock surged 3% to a day’s high of Rs 829.55.“Board approved the proposal of buyback of 7,02,439 fully paid-up equity shares of face value Rs 5 (Rupees Five only) each of the Company (“Equity Shares”) of an amount not exceeding Rs 720 Million (Rupees Seven Hundred and Twenty Million only),” said the company in a filing to the exchanges.Further details on the buyback process, record date, and timelines will be announced in due course.As on August 30, the pre-buyback shareholding of the company states that 51.6% of the shareholding rests in the hands of the promoter and the promoter group while the remaining 48.4% is with the public shareholders such as mutual funds, foreign investors etc.This is the second instance of Matrimony.com conducting a buyback, the first occurred in July 2022.Also read: September IPO Frenzy: Dalal Street set for biggest listing line-up in 14 years as stocks sizzleA share buyback usually occurs when a company uses its accumulated profits or reserves to purchase its own outstanding shares from the market. This reduces the number of shares available to the public and serves as a way to return cash to investors.For the quarter ended June 2024, the company had reported a 1.4% YoY decline in its profit after tax (PAT) at Rs 14 crore while its revenue from operations were also down by 2.2% YoY to Rs 123 crore.In the last one year, the stock has surged by 28%, while in the current year so far, the shares have increased by 40%.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)