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Godawari Power & Ispat board gives nod to Rs 250 crore share buyback via tender offer route

The buyback price has been fixed as Rs 500 per share, which is 22.2 percent higher than the last closing price.

March 18, 2023 / 05:23 PM IST
The buyback size accounts for 3.66% of total equity shares (Representative image)

The buyback size accounts for 3.66% of total equity shares (Representative image)

 
 
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The board of Godawari Power & Ispat on March 18 approved the plan to buy back shares worth up to Rs 250 crore, via the tender offer route.

The board has given the nod to buy back 50 lakh equity shares of Rs 5 each face value, accounting for 3.66 percent of the total equity shares, the company informed the stock exchanges.

The buyback price has been fixed as "Rs 500 per share", which is over 22 percent higher than the last closing price.

The aggregate amount to be spent for the share buyback, amounting to Rs 250 crore, represents 8.14 percent of the total paid-up equity share capital and 7.67 percent of the company's free reserves, as per the regulatory filing.

The planned buyback is "within the statutory limit of 10 percent of the aggregate of the total paid-up equity share capital and free reserves of the company", the company said.

The buyback is proposed to be undertaken "through the tender offer route", the filing further noted. Under the tender offer buyback, shareholders need to tender a portion or all of their shares within a specified time frame, and at a stated price. On the other hand, an open offer buyback allows the company to acquire back shares from the open market over an extended time frame.

A five-member buyback committee, which includes Godawari Power & Ispat managing director Bajrang Lal Agrawal, has been formed by the company to facilitate and oversee the process of buying back the shares.

The shares of Godawari Power & Ispat witnessed a surge over the last two trading sessions after the company said it would be considering a buyback proposal. The scrip settled at Rs 389.85 at the BSE on March 17, which was around 15 percent higher as against the previous close.

Moneycontrol News
first published: Mar 18, 2023 05:23 pm