Financial Daily from THE HINDU group of publications
Wednesday, Jun 16, 2004
Financial Daily from THE HINDU group of publications Wednesday, Jun 16, 2004 |
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Markets
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Buyback Britannia to buy back shares from market Our Bureau
Mumbai , June 15 BRITANNIA Industries Ltd is seeking to buy back its shares from the open market. The buyback, of these fully paid up equity shares of face value Rs 10, would be facilitated through the electronic trading facility at the BSE and NSE, stated the offer document filed with Securities and Exchange Board of India. The number of shares finally bought back would depend on the average price paid for the shares and the amount deployed in the buyback. However, the maximum number of shares to be bought back is limited to 25 lakh and the amount to be deployed in the buy back is limited to Rs 78 crore. The buyback has been authorised by a special resolution passed by the Board of Directors on June 12, 2003 and passed by the shareholders, through a postal ballot, on August 8, 2003, stated the document. The previous buyback offer of the company was completed on June 2, 2003. The earnings per share of the company was Rs 35.24 for the nine months ended December 31, 2003. The same was Rs 38.30 for financial year 2003 and Rs 75.67 for FY 2002, according to the draft offer document. The average monthly market price of the share was Rs 590.54 for May 2004. The highs and lows recorded for the month were Rs 614 and Rs 538.3 respectively, on the BSE. On the NSE, the share registered an average of Rs 591.4 for May. The highest price recorded was Rs 625 and the lowest was Rs 534.05 during the month. "The company currently has substantial reserves that are deployed in financial assets that yield returns below the desired rate of return for shareholders. The company intends to return surplus cash to its shareholders through the buyback process. Further, the buyback is also expected to enhance the earnings per share of the company in future and create long-term shareholder value," has been stated as the reason for the buyback in the offer document.
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