Buyback alert! GE Shipping shares rise 3% as firm set to repurchase shares at 16% premium

Shares of Great Eastern Shipping Company Ltd gained as much as 2.6% to their day's high of Rs 1,350 on the BSE on Friday after the company announced its first-ever share buyback, with a total value of up to Rs 900 crore.

The company’s board has approved a proposal to buy back up to 58.82 lakh equity shares, equivalent to 4.12% of its total paid-up equity share capital. The buyback will be carried out through the open market route, with the maximum buyback price set at Rs 1,530 per share. This represents a 15.99% premium to the stock’s closing price of Rs 1,319 on Thursday.

Under the open market mechanism, Great Eastern Shipping will acquire its shares through the stock exchanges over a period of time, subject to applicable limits.


If the company buys back the maximum number of shares at the maximum price, it will repurchase up to 58.82 lakh shares. The proposed buyback accounts for less than 25% of the company’s existing paid-up equity capital.

According to the company’s latest shareholding data, promoters and the promoter group own a 30.07% stake. Foreign investors, including FPIs, FIIs, NRIs, foreign banks and overseas corporate bodies, hold a 29.83% stake.

Mutual funds, financial institutions, banks, AIFs, NBFCs and insurance companies together own a 12.49% stake. The remaining 27.60% is held by other shareholders, including individuals, corporates and trusts.

GE Shipping Q1 results

The Great Eastern Shipping Company (GE Shipping) reported more than a two-fold rise in net profit for the June quarter, supported by strong growth in its shipping business and an improvement in operating margins.

Consolidated net profit climbed to Rs 1,309 crore in the first quarter of FY27, compared with Rs 505 crore in the corresponding quarter a year earlier. Revenue from operations grew 66.9% year-on-year to Rs 2,005.4 crore from Rs 1,201.5 crore in the year-ago period.

The company also posted a stronger operating performance, with EBITDA nearly doubling to Rs 1,337.7 crore from Rs 642.8 crore. EBITDA margin widened to 66.7% from 53.5% a year earlier.

The shipping segment continued to account for the bulk of the company’s revenue. Revenue from shipping operations rose to Rs 1,890.97 crore in the June quarter from Rs 994.21 crore in the year-ago period.

Revenue from the offshore services business also increased to Rs 406.02 crore from Rs 350.41 crore in the same period last year.

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