Buyback alert! 5 stocks turning ex-record dates for share buybacks in May. Check details

As many as five companies including Zydus Lifesciences, Welspun Living and others are approaching the record dates for their respective share buybacks. Only those shareholders who own the shares of these companies in their demat accounts will be eligible to tender shares as part of the offer.

Share buyback refers to a corporate action where a company repurchases its own shares from existing shareholders, mostly at a premium to the market price.

Welspun Living has set May 22 (Friday) as the record date for its Rs 252 crore share buyback. Earlier this month, the textiles major had announced the buyback via the tender route at a price of Rs 175 per share, implying a premium of more than 23% over the previous closing price. The company plans to buy back 144 lakh fully paid-up shares of the company with a face value of Re 1 each for an aggregate amount not exceeding Rs 252 crore. This represents 6.52% of the company’s total paid-up equity share capital and 5.65% of the free reserves.

CMS Info Systems last week fixed May 22 (Friday) as the record date for its Rs 168-crore share buyback. The company aims to repurchase over 49 lakh shares, representing 3% of its total stake, at a buyback price of Rs 340 per share. This implies a premium of more than 11% from the stock’s previous closing price.

Zydus Lifesciences on Tuesday announced its biggest-ever share buyback worth Rs 1,100 crore at a buyback price of Rs 1,150 per share, offering nearly a 10.5% premium over the stock’s previous closing price. Zydus Lifesciences’ board approved a plan to buy back up to 95.65 lakh shares, each with a face value of Re 1, representing 0.95% of the company’s paid-up equity share capital, for an aggregate amount not exceeding Rs 1,100 crore. The buyback will be conducted via the tender route. The record date to determine shareholders’ eligibility for the buyback has been fixed as May 29 (next Friday).

Dhanuka Agritech this week announced a share buyback worth Rs 70 crore via the tender route, at a buyback price of Rs 1,400 per share, implying a premium of nearly 22% over the stock’s previous closing price. Under the buyback, the fertiliser and pesticide manufacturer intends to acquire up to 5 lakh shares representing 1.11% of the total paid-up equity capital. The record date to determine shareholders’ eligibility for the buyback has been fixed as May 29 (next Friday).

CyberTech Systems and Software also fixed May 29 (next Friday) as the record date for its Rs 14.45-crore share buyback. The company aims to repurchase 8.5 lakh shares, representing 9.81% of its total stake, at a buyback price of Rs 170 per share. This implies a premium of more than 20% from the stock’s previous closing price.


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