PremiumCement manufacturer Star Cement on Friday while announcing its first quarter earnings for the current fiscal also announced its board's approval to buyback up to 82 lakh shares at a price of ₹150 per share through the tender offer route for an aggregate consideration of ₹123 crore.
The board of the company has fixed Wednesday, 25th August, 2021 as the ‘record date’ for determining the members of the company who are eligible to participate in the buyback offer of the company, it said.
"The board of directors of the company at its meeting held today has unanimously approved a proposal to BuyBack upto 82,48,580 (Eighty Two Lakhs Forty Eight Thousand Five Hundred Eighty Only) fully paid-up equity shares of Re. 1/- each of the company (representing 2% of the total Equity Capital) from all the equity shareholders of the Company on a proportionate basis through the 'Tender Offer' route.. at a price of ₹150.. for an aggregate consideration not exceeding ₹123,72,87,000 (Rupees One Hundred Twenty Three Crores Seventy Two Lakhs and Eighty Seven Thousand only),'' Star Cement said in an exchange filing.
The maximum shares proposed to be bought back represent 2% of the total paid up equity shares of the company and the aggregate consideration for proposed buy-back represents 9.75% & 6.07% of the aggregate of the paid up equity share capital and free reserves, the company added.
Shares of Star Cement were trading more than 7% higher to ₹117 per share on the BSE in Friday's afternoon deals after the earnings and buyback announcement.
Meanwhile, the company's Q1 consolidated net profit jumped to ₹68 crore as against ₹43 crore in the same quarter last year. Star Cement's Q1 revenue was up at ₹511 crore from ₹292 crore year-on-year (YoY).
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