Electrical equipment maker Crompton Greaves on Thursday said its Rs. 265-crore buyback offer would begin on July 15.
The buyback offer, approved by the company’s board last month, would close on June 27, 2014.
The company, a part of Avantha Group, plans to purchase more than 2.12 crore shares during the buyback period. Each scrip would be acquired at a maximum price of Rs. 125, valuing the offer at about Rs. 265.7 crore, according to a public announcement.
Religare Capital Markets Ltd is the sole broker for the buyback offer. “The maximum buyback size is Rs. 2,657 million, which represents approximately 10 per cent of the aggregate of the company’s total paid—up equity share capital plus free reserves as on March 31, 2012,” the announcement said.
The buyback price of Rs. 125 per share is at a premium of about 43 per cent to its closing price on June 28, the day on which the board approved the proposal.
Crompton Greaves raked in a profit after tax of Rs. 445.84 crore on total revenues of Rs. 7,233.9 crore during the year ended March 2013.
