Shares of realty major DLF on Wednesday soared over 15 per cent as the company announced it would consider buying back some shares to “protect shareholders’ interest.”

In a regulatory filing in Mumbai, the New Delhi-based real estate major said its board would meet on July 10 to consider and approve buyback of equity shares of the company.

The buyback proposal follows a sharp erosion in the company’s market value over the recent past, which saw its share price plunging to below the issue price of Rs 525, at which the company had sold shares to public about a year ago.

At one point of time, the shares were trading at over double the public offer, but it has dropped to less than half of the life-time high of Rs 1,225, scaled on January 15 this year.

However, the stock rebounded sharply on Wednesday and settled 15.08 per cent higher at Rs 423.95, after hitting an intra-day high of Rs 439.90. However, the scrip had also fallen to its all-time low at Rs 350.30 in the morning trade today.

It had dropped 7 per cent on Tuesday to close the day at Rs 368.40 on the BSE. A total of 35.92 lakh equity shares of DLF on Wednesday changed hands at the bourse.

When contacted, a DLF spokesperson said, “We are generating lot of cash. Our land bank is fully paid. Through buy-back of equity shares, we want to protect the investors’ interest.”

As on the March, 2008, the promoters held 88.16 per cent stake in the company.

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