Emami announces share buyback worth Rs 282 crore at 29% premium. Here's what you need to know

FMCG player Emami on Thursday announced that its board of directors has approved the proposal to buy back shares worth up to Rs 282 crore at a buyback price of Rs 475 apiece, implying nearly a 29% premium over the stock’s previous closing price.

The company announced that the Rs 282 crore buyback will be done through the open market route for up to 59.36 lakh shares or a 1.36% stake in the company. This would mark Emami’s first buyback since 2023.

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Emami said it will utilise at least 75% of the total amount earmarked for the buyback, which roughly stands at Rs 211.5 crore for a minimum buyback size of 44.53 lakh shares. The company’s board has constituted a committee for the buyback.

Prior to the buyback, promoters and the promoter group held a nearly 55% stake in the company while public shareholders held a 45% stake. After the buyback, promoters will hold nearly a 56% stake despite not participating in the buyback, as the overall total shares available for trading reduces after the buyback. The public shareholding in the company, meanwhile, will reduce to 44%.

A buyback of shares refers to a corporate action where a company repurchases its own shares from existing shareholders. Usually, the company purchases the shares at a higher price than current levels, encouraging investors to participate.

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Emami share price

After the buyback announcement, Emami shares surged more than 7% to hit an intraday high of Rs 396 apiece on Thursday. The stock then pared some gains to trade only 2% higher at Rs 378 apiece in the afternoon. The stock has gained around 2% in a week, but declined 7% in a month and 28% in 2026 so far.

Emami shares have fallen more than 37% in one year. In the longer term, the stock dropped 31% in three years and 35% in five years. The company has a market capitalisation of more than Rs 16,480 crore.

Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.