Emami Ltd board approves buyback of shares upto Rs. 550 through open market purchase

The Board of Directors of Emami Ltd, at its meeting held on February 3, 2022 at 11:30 a.m. which concluded at 1:15 p.m., approved the buyback of the Company's fully paid-up equity shares having a face value of Re. 1 (Indian Rupee One Only) each (the "Equity Shares"), for an aggregate amount not exceeding Rs. 162.0 cr. (Indian Rupees One Hundred and Sixty-Two Crore only) excluding buyback tax, filing fees, advisory fees, intermediaries fees, public announcement publication expenses, stock exchange fee for usage of their platform for Buyback, brokerage, costs, fees, turnover charges, taxes such as securities transaction tax, goods and service tax (if any) and income tax, stamp duty and other incidental and related expenses ("Maximum Buyback Size") and at a price not exceeding Rs. 550 (Indian Rupees Five Hundred and Fifty Only) per Equity Share ("Maximum Buyback Price"), payable in cash, 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 in accordance with the provisions of the SEBI (Buy-Back of Securities) Regulations, 2018, as amended ("Buyback Regulations") and the Companies Act, 2013 and the rules made thereunder, each as amended from time to time ("Companies Act") (the process being referred hereinafter as "Buyback").

The indicative maximum number of Equity Shares proposed to be bought back at the Maximum Buyback Size and Maximum Buyback Price would be 29,45,455 shares at Rs. 550 per Share ("Maximum Buyback Shares") representing 9.98 % which is less than 25% of the existing paid up equity capital of the Company). If the Equity Shares are bought back at a price below Maximum Buy Back Price, the actual number of Equity Shares bought back could exceed the Maximum Buyback Shares, but will always be subject to the Maximum Buy Back Size.

The company shall utilise at least 50% of the amount earmarked as the Maximum Buy Back Size for the Buy Back i.e. ? 81.0 Cr. (Rupees Eighty-One Crores only) ("Minimum Buy Back Size"). Based on the Minimum Buy Back Size and Maximum Buy Back Price, the Company would purchase indicative minimum of 14,72,727 Equity Shares ("Minimum Buyback Shares").

The Maximum Buyback Size represents 9.98 % and 9.94 % of the aggregate of the total paid up capital and free reserves of the Company based on the audited standalone and consolidated financial statements of the Company as at March 31, 2021, respectively (being the latest available audited financial statements of the Company), which is not more than 10% of the total paid up capital and free reserves of the company in accordance with the proviso to Regulation 5(i)(b) of the Buyback Regulations and Section 68(2)(b) of the Companies Act.

The Board has also constituted a committee for the purposes of the Buyback (the "Buyback Committee") and has delegated its powers to the Buyback Committee to do or cause to be done all such acts, deeds, matters and things, in its discretion, deem necessary in connection with the Buyback.

Shares of Emami Limited was last trading in BSE at Rs. 508.55 as compared to the previous close of Rs. 494.65. The total number of shares traded during the day was 4817 in over 443 trades.

The stock hit an intraday high of Rs. 510.00 and intraday low of 493.05. The net turnover during the day was Rs. 2423552.00.

Source : Equity Bulls

Keywords

Emami INE548C01032 Buyback OpenMarketPurchase