Praj Industries announces to buyback shares of Rs 62.07 lakh
Praj Industries has announced it will buyback a maximum of 62.07 lakh shares, representing just over 3% of its pre-buyback shares.
By Gouri Athale, ET Bureau |
PUNE: Praj Industries, the Pune-based biofuels technology developer and manufacturer of equipment for breweries and distilleries, has announced a share buyback, slated to open on the stock exchanges from December 15.
Praj has announced that it will buy back its equity shares at a maximum price of Rs. 90 per share offace value Rs. 2, involving an outlay not exceeding Rs. 55.86 crore, which represents 10% of the company’s total paid up capital and free reserves.
At Rs. 90 per share, it expects to buyback a maximum of 62.07 lakh shares, which amounts to 3.36% of the pre-buyback shares. It will buyback a minimum of 15.51 lakh shares.
The expectation is that there will be a minimal change in the promoter share holding since these shares are likely to be extinguished. Company officials said details will be available later in the week.
Currently, executive chairman, Pramod Chaudhari holds a 17.53% stake, his wife Parimal Chaudhari 6.33% and another 1.95% on behalf of the Moriyaset Trust. Thus, the promoter holding currently totals 25.81%.
The announcement for the proposed share buyback has stated that the buyback will enhance overall share holder value and lead to a reduction in outstanding numbers of equity shares. This, in turn, is expected to improve financial ratios like earnings per share and return on net worth, etc.
The company will carry out the buyback through open market purchases through stock exchanges. It has further noted that the maximum price, of Rs. 90 per share, approved by the board of directors at their meeting on December 3, is a premium of 15.31% to the BSE and a 15.24% premium to its NSE price on December 2.
Praj has announced that it will buy back its equity shares at a maximum price of Rs. 90 per share offace value Rs. 2, involving an outlay not exceeding Rs. 55.86 crore, which represents 10% of the company’s total paid up capital and free reserves.
At Rs. 90 per share, it expects to buyback a maximum of 62.07 lakh shares, which amounts to 3.36% of the pre-buyback shares. It will buyback a minimum of 15.51 lakh shares.
The expectation is that there will be a minimal change in the promoter share holding since these shares are likely to be extinguished. Company officials said details will be available later in the week.
Currently, executive chairman, Pramod Chaudhari holds a 17.53% stake, his wife Parimal Chaudhari 6.33% and another 1.95% on behalf of the Moriyaset Trust. Thus, the promoter holding currently totals 25.81%.
The announcement for the proposed share buyback has stated that the buyback will enhance overall share holder value and lead to a reduction in outstanding numbers of equity shares. This, in turn, is expected to improve financial ratios like earnings per share and return on net worth, etc.
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The company will carry out the buyback through open market purchases through stock exchanges. It has further noted that the maximum price, of Rs. 90 per share, approved by the board of directors at their meeting on December 3, is a premium of 15.31% to the BSE and a 15.24% premium to its NSE price on December 2.
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