Chemical stock Atul Ltd announces share buyback. Details here
Premium- Shares of Atul Ltd were trading over a per cent lower at ₹9,772 apiece on the BSE in Friday's afternoon deals
Atul Ltd board has approved share buyback of fully paid paid up equity shares of face value of ₹10/- each of the Company. In its exchange communication today, The company informed the stock exchanges that share buyback will not exceed ₹11,000 per equity share.
Atul Ltd announced the share buy back approval by the Board of Directors citing, "Subject to such other approvals, the board approved the Buy-back of fully paid up equity shares by the company having face value of ~ 10/- each from open market through stock exchanges under the Buy-back Regulations and the Act, for an amount not exceeding around 70,00,00,000/- at a price not exceeding ₹11,000/- per equity Share (Maximum Buyback Price) payable in cash which represents 2.16% and 2.10% of the total paid-up equity share capital and free reserves."
The board has also constituted a committee for the purpose of buyback (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, as it may, in its discretion, deem necessary in connection with the buyback, the company added.
A share buyback, also known as share repurchase, is a corporate action to buy back its own outstanding shares from its existing shareholders usually at a premium to the prevailing market price. It can be an alternative tax-efficient way to return money to shareholders. Share buybacks reduce the number of shares in circulation, which can increase the share value and the earnings per share (EPS).
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Shares of Atul Ltd were trading over a per cent lower at ₹9,772 apiece on the BSE in Friday's afternoon deals. The stock has surged more than 37% in a year's period and the counter is up about 8% in 2022 (year-to-date or YTD).
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