Pilani Investment & Industries Corporation Ltd., a non-banking financial company (NBFC) and parent of the Birla Group, is likely to announce the results of the e-voting by shareholders for increasing the authorised share capital of the company and issuance of bonus shares, on December 21, as per a regulatory filing.
The company’s board had on November 10, 2020 announced bonus shares for shareholders at the ratio of 2:5. (two new shares for every 5 shares held).
The e-voting, which started on November 21, will end on December 20 and on Monday, the results may be announced.
In a report, brokerage firm KR Choksey Shares and Securities said the present scenario offered benefits for investors.
“Pilani Investment and Industries Corporation Ltd. has consistently rewarded its shareholders with a strong dividend track record for the last ten years,” it said.
“The company is backed by a strong legacy and adherence to high standards of corporate governance. A buyback is ideally suited for Pilani Investments as there is no requirement to utilise its cash for business purposes,” KR Choksey Shares & Securities said.
A 10% buyback at approximately ₹3,500-₹4,000 per share would require an allocation of ₹280 crore to ₹300 crore, it said.
“Apart from participating in the buyback, the residual investors could also see a subsequent value unlocking in the future. Thus a buyback for Pilani Investments would prove to be a win-win situation for the management, small investors who choose to participate in the buyback as well as the residual investors who choose to remain invested post buyback,” it added.
