Adhesives and industrial chemicals major Pidilite Industries’ share buyback program up to Rs 500 crore is slated to open on March 1, according to a BSE filing. Notably, the company had fixed 12th February 2018 as the record date for the buyback. Accordingly, 12th February stands as the date for determining the entitlement and the names of the Equity Shareholders eligible to participate in the Buyback Offer.
In a stock exchange filing in December-17, Pidilite had approved a proposal for buying back shares not exceeding 50 lakh equity shares at a price of Rs 1,000 per equity share, implying an aggregate amount not exceeding of Rs 500 crore according to Pidilite Industries’ BSE filing last month.
The 50 lakh equity shares in the buyback amount to 0.975% of the total paid-up equity capital of the company. The buyback price is fixed at Rs 1,000 per share. Pidilite shares were trading at Rs 891.3, down by nearly 1% on Monday at NSE. The buyback price of Rs 1,000 implies a premium of more than 12% from current market prices.
The maximum amount proposed to be utilized for the Buyback, is Rs. 500 crore which represents 15.07% of the total paid-up share capital and free reserves of Pidilite industries (on a standalone basis) and 14.79% of the total paid-up share capital and free reserves (on a consolidated basis) of the Company and is therefore not exceeding the limit of 25% of the Company’s total paid-up share capital and free reserves as per the audited Balance Sheet as at March 31, 2017, the company said in a release.
According to the company’s filing on BSE, the Buyback is aimed to enable the Company to reduce its treasury assets by putting an equivalent amount of liquid resources in the hands of those shareholders who respond to the offer for Buyback.
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