Piramal Enterprises Ltd has announced a share buyback scheme worth Rs 1,750 crore at Rs 1,250 apiece through the tender offer route.
“…the board of directors of the Company at its meeting held on July 28, 2023, approved a buyback… of up to 1,40,00,000 (One Crore Forty Lakhs only) equity shares…of face value of Rs. 2/- each for an aggregate amount not exceeding Rs. 1,750 crore,” it said in an exchange filing on July 28.
This represents 5.87 percent of the total paid-up equity share capital.
The price has been set at Rs 1,250 per share. The offer represents a premium of around 16 percent to the July 28 (Friday) closing price of Rs 1,073.
The Board has fixed Friday, August 25, 2023, as the record date for the purpose of determining the shareholders eligible to participate in the buyback.
“The Company's promoter and promoter group have expressed their intention not to participate in the Buyback,” it added.
The tendering period of the buyback will be open for a period of 5 working days.
The process, timelines and other requisite details of the buyback will be set out in the public announcement and the letter of offer to be published in accordance with regulations, it added.
As on July 21, 2023, the promoters held 43.48 percent stake in Piramal Enterprises, domestic institutions 13.55 percent, foreign investors 25.74 percent and Indian public, corporates and others 17.23 percent.
“The post buyback shareholding pattern of the Company shall be ascertained subsequently,” the filing said.
Meanwhile, shares of Piramal Enterprises on July 28 closed 2.15 percent lower at Rs 1,072.80 apiece on BSE against its previous close.
A share buyback is when a company repurchases its own shares from existing shareholders to reduce the number of shares available on the open market.
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