Bayer CropSciences shares tank 10% on share buyback offer

NEW DELHI: Bayer CropScience Ltd slipped over 10 per cent in morning trade on Tuesday, after it approved buyback of 7.29 per cent of the company's equity at not more than Rs 1,580 per share aggregating to raise around Rs 455 crore.

At 09:48 a.m.; the stock recouped some of the morning losses and was trading 7.1 per cent lower at Rs 1623.05. It had hit a low of Rs 1570 and a high of Rs 1639.80 in trade today.

The buyback price of Rs 1580 is 9.6 per cent discount to Monday's closing price of Rs 1748.95 on the Bombay Stock Exchange.

The stock has been a market outperformer for the year 2013 and has rallied nearly 35 per cent as compared to a 4.5 per cent rise in the benchmark index for the same period, as of data collected on July 22.

"Board has unanimously approved a buyback proposal for purchase of up to 2,879,746 equity shares of Rs 10 each from all shareholders of the company," the company said in a filing to BSE.

The buyback programme would be subject to approval of the shareholders by way of a special resolution through postal ballot and all other applicable statutory approvals, it added.