Balrampur Chini Mills, the country's second-largest sugar firm, today announced buyback of equity shares worth Rs 175 crore through tender offer.
In a BSE filing, the company said it will buyback one crore equity shares at a face value of Rs 1 each from the equity shareholders on a proportionate basis.
The buyback of equity shares would be through a tender offer route at a price of Rs 175 per share payable in cash.
The company has fixed January 13 as record date for determining the entitlement and the names of the shareholders, who are eligible to participate in the buyback offer. Axis Capital Ltd is manager to the buyback offer.
The buyback, which has already been approved by the company's shareholders, is subject to receipt of necessary regulatory clearances.
Participation in the buyback is voluntary. Buyback is a more efficient form of returning surplus cash to the members holding equity shares of the company.
Balrampur Chini has 11 sugar factories in Uttar Pradesh, and has an aggregate crushing capacity of 79,000 tonnes per day. It also has three distilleries.
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