Moneycontrol Bureau
Shares of DCM Shriram (formerly known as DCM Shriram Consolidated), touched 52-week high of Rs 74.90 on Monday after the board of directors of the company approved buyback of shares at a price of upto Rs 90 apiece. The stock rallied as much as 10.4 percent in early trade.
"... Board of directors on February 22 unanimously approved the buy-back of equity shares from its existing shareholders (other than the Company's promoters, promoter group, persons in control and persons acting in concert), at a price not exceeding Rs 90 per share, up to an aggregate amount not exceeding Rs 135 crore from the open market," the company said in its filing.
DCM also said such buyback shall be equal to or less than 10 percent of the company's total paid-up equity capital and free reserve.
It believes that the buyback will help optimise value for the shareholders of the company.
Axis Bank is appointed as merchant banker and Escrow Banker for the buyback.
The buyback programme is expected to be initiated sometime early next month.
At 09:37 hours IST, the stock was trading at Rs 72.20, up 6.41 percent amid high volumes on the BSE.
Posted by Sunil Shankar Matkar
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