Emami sets record date for share buyback worth ₹186 Cr for ₹450 per share

Finance Bill

Emami Limited is a major mid-cap FMCG company with a market value of 15,424 Cr. Emami Limited is one of the top skin care and FMCG companies in India. Its brands include BoroPlus, Navratna, Fair and Handsome, Zandu Balm, Mentho Plus Balm, Quick Relief, and Kesh King. It sells skin care and health products in India and around the world.

The board of directors of Emami Ltd approved a plan to buy back shares for up to 186 crore on March 24. On March 24, the company told the stock exchanges that the board of directors had agreed to a plan to buy back 41.3 million shares with a face value of 1 each for a maximum price of 450 per share. The buyback price of 450 is almost 29.17 percent more than the price at the end of the day.

“This is in response to the notices we sent to the stock exchanges on March 24, 2023, telling them that the Board of Directors had agreed to the company’s plan to buy back fully paid-up equity shares with a face value of 1/- (Rupee One Only) each (“Equity Shares”) “) of the Company, each from its shareholders/beneficial owners (other than those who are promoters, members of the promoter group, or persons in control), from the open market through stock exchange mechanism for an aggregate amount not exceeding 18,600 Lakhs (Rupees Eighteen Thousand Six Hundred Lakhs Only) (“Maximum Buyback Size”), and at a price not exceeding 450/- (Rupees Four Hundred Fifty Only) per Equity Share (“Max
The Board of Directors gave the Buyback Committee permission to set the record date at their meeting on March 24, 2023. At their meeting today, March 27, 2023, the Buyback Committee set the record date as April 12, 2023 (“Record Date”) “). According to Regulation 17(ii) of the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018, as amended (“Buyback Regulations”) the Buyback Offer must start no later than four Working Days after the Record Date and must end no more than sixty-six Working Days after it starts. So, the Buyback Committee has decided that the Buyback will begin on April 13, 2023, and end on the earliest of (a) sixty-six Working Days, or July 19, 2023, from the date the Buyback began; (b) when the Company finishes the Buyback by spending the amount equal to the Maximum Buyback Size; or (c) any earlier date that the Board may decide “said Emami in a stock exchange filing. Emami’s shares closed on the NSE today at 347.90 each, which is 4.04% less than what they were worth when the market closed yesterday at 362.55. The stock’s 52-week high was 524.00 on (26-Sep-2022) and its 52-week low was 340.55 on (26-Jan-2023) (20-Mar-2023). A R Ramachandran, co-founder and trainer at Tips2trades, said this about the stock’s technical prospects: “Even though Emami has strong fundamentals, such as a high ROCE, low debt, and consistent profit growth, it hasn’t done as well as other FMCG stocks in the last year because investors are very pessimistic. With strong support at 340, a promoter buyback is a good way for the stock price to get a boost. A daily close above 370 could lead to short-term goals between 390 and 415.”

Source: Team CurrencyVeda