Hindustan Unilever Ltd. (HUL), the fast moving consumer goods giant, has announced a buyback of its equity shares at a price not exceeding Rs. 280 per share and up to an aggregate amount of Rs. 630 crore which would not exceed 25 per cent of the total paid-up capital of the company.
At a meeting on Friday, the board considered and approved, subject to the approval of the members of the company and such other approvals/consents, as may be necessary, the buyback proposal. The company proposes to buy back shares through open market purchases from time to time.
Maximum price
The maximum price is at a premium of 20 per cent over the average closing price of the company's share in the last three months. The buyback is proposed to effectively utilise the surplus cash and make the balance-sheet leaner and more efficient to improve returns. Today, the company has 3.42 lakh resident individual shareholders.
