Indiabulls Ventures climbs 8% after board clears share buyback
Promoters held 35.53 percent stake in the company, while foreign shareholding stood at 39.30 percent as of September 2019.
October 11, 2019 / 11:27 AM IST
Indiabulls Ventures rallied 8 percent in early trade after the board approved a buyback of 6.67 crore shares at Rs 150 per share at a meeting on October 11.
The stock has fallen more than 65 percent in the last three months amid reports of corporate governance issues and worries over Indiabulls Group’s plan to merge Indiabulls Housing Finance and Lakshmi Vilas Bank. The Reserve Bank of India recently rejected the merger proposal.
Indiabulls Ventures was quoting at Rs 103.70, up Rs 4.10, or 4.12 percent, on the BSE at 1055 hours.
The company informed exchanges that its board of directors had approved a Rs 1,000-crore buyback proposal.
"The board approved a buyback of up to 6,66,66,666 fully paid-up equity shares having face value Rs 2 each of the company, representing 12.61 percent of its total existing fully paid-up equity at Rs 150 per share, through the tender offer route," Indiabulls Ventures said in its BSE filing.
The buyback size being more than 10 percent of company’s paid-up equity capital and free reserves will be subject to approval of shareholders by way of a special resolution, through a postal ballot.
As of September, promoters held 35.53 percent stake in the company, while foreign shareholding stood at 39.30 percent.