Matrimony.com buyback: Shares of Matrimony.com ended Monday’s (December 15) trading session in the red, even as the company announced a share buyback worth ₹58.5 crore. This marks the company’s third buyback, following similar exercises undertaken in 2022 and 2024.

Matrimony.com buyback details

The ₹58.5 crore buyback will be conducted via the tender offer route. The company plans to buy back 8,93,129 fully paid-up equity shares, with Matrimony.com buyback price fixed at ₹655 per share.

The buyback size represents about 24.68% and 24.81% of the company’s paid-up equity capital and free reserves based on its audited financials as of 31 March 2025. The small-cap company has not yet finalised the record date for its buyback.

The buyback will be funded through cash and is subject to shareholder approval via a special resolution through postal ballot. “The Board has noted the intention of the promoters and members of the promoter group of the company not to participate in the proposed buyback,” stated the company filing.

As of December 12, the promoters held a 54.61% stake in Matrimony.com, while public shareholders owned the remaining 45.39%.

Following the buyback announcement, Matrimony.com share price dipped, ending the session 5.12% lower at ₹518.55. During the day, it hit a low of ₹515.30 and a high of ₹561.10. So far in 2025, the small-cap stock has lost 22% of its value and delivered negative returns in two, three and five-year windows.

Should you apply for Matrimony.com buyback?

Harshal Dasani, Business Head at INVAsset PMS, said that Matrimony.com’s stock weakness post-buyback reflects investor caution despite the positive signal. The ₹58.5 crore buyback at ₹655 per share, though at a premium, is modest relative to its market capitalisation and unlikely to materially boost earnings per share, he added.

Meanwhile, commenting on whether investors should consider participating in Matrimony.com’s buyback, Dasani said, “The buyback price carries a healthy premium to recent market levels, and the quantum — about 24.7% of the company’s paid-up equity and free reserves — signals strong confidence in its cash flows and balance sheet strength. For long-term shareholders, the move is structurally positive. A reduced share base enhances earnings per share and signals management’s intent to reward investors amid moderate growth visibility.”

However, since the stock has been trading below the buyback price, near-term volatility could persist depending on participation levels and broader market sentiment, he cautioned.

He advised those investors to participate who are seeking liquidity or near-term gains. Conversely, investors with a multi-year view could stay invested, as the company’s steady cash generation and declining equity base may support improved valuations over time, he added.

(This article will be updated with views from other analysts, too. Check back for updates.)

Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.