Punjab Communications leaped up 15.4% to Rs 48.50 on BSE today on the back of the company's announcement that it will consider a buy-back of shares.

A total of 82,572 Punjab Communications (PCL) shares were traded on BSE in the first couple of hours of trading.

The stock has been moving in a band of Rs 40-44 over the last one month. Earlier, the stock witnessed a sharp setback following disappointment on the disinvestment front. It had surged sharply prior to that . From Rs 53.20 on 12 February 2003, the stock surged 54% in a short while to a peak at Rs 81.95 on 4 March 2003.

From that peak, the stock then crashed 54.4% to Rs 37.30 on 31 March 2003 due to the fact that the Punjab government received just one bid from Shyam Telecom for PCL's disinvestment. That, too, was rejected as the price quoted by the bidder was lower than the reserve price.

However, today, the stock moved up after the company announced, post trading hours on Wednesday, that its board of directors will meet on 4 July 2003 to consider a buy-back of shares. PCL has an equity base of Rs 16.11 crore. The book value per share as on 31 March 2003 was Rs 106.30 per share.

PCL was incorporated in July 1981 by the Punjab State Electronics Development and Production Corporation to manufacture direct-to-line multiplexing equipment. Later, it diversified into the production of pulse code modulated multiplexers, trans multiplexers, voice frequency telegraphs, rural automatic exchanges, digital VHF radios, etc. The major users of these products are BSNL, ONGC, VSNL, the Railways and the defence sector .

Punjab State Electronics Development and Production Corporation (PSEDPC), which is a state government undertaking, holds a 69.7% stake in PCL. It had proposed divesting its entire holding in PCL and had begun divestment that, however, failed as the bid price was too low.

There have been reports that the Punjab government plans to embark on the PCL disinvestment again.

PCL reported a huge loss of Rs 11.53 crore in FY 2003 as against a net profit of Rs 5.83 crore in FY 2002. Its net sales declined 38% in FY 2003 to Rs 96.11 crore (Rs 157.32 crore).