The Hindu Business Line : Britannia Industries completes third buyback plan

BISCUIT major Britannia Industries has completed its third buy-back programme. This buy-back programme has been completed in just over three weeks time, the shortest period in which the company has completed buy-back of shares.

The company bought around 12.3 lakh shares for a consideration of Rs 78 crore, sources said.

Last month, Britannia Industries had decided to buy-back up to 25 lakh shares at a price not exceeding Rs 650 per equity share for an aggregate amount not exceeding Rs 78 crore. The shares bought back by the company were at an average price of Rs 635, which is below the maximum price limit of Rs 650.

After this, the equity capital of the company will reduce to Rs 23.9 crore from Rs 25.10 crore.

During the first buy-back in 2001-02, its equity capital came down from Rs 27.85 crore to Rs 26.70 crore; after the second buy-back, it declined further to Rs 25.10 crore.

In the three buy-back plans, the company has used around Rs 225 crore of cash.

The company has also announced its fourth buy-back programme. Under the proposed plan, it intends to buy-back 25 lakh shares for amount not exceeding Rs 76 crore. This is likely to start after the legal formalities with the third buy-back plan are completed.

Despite the reduction in the equity capital and increase in net profit, the stock price remained almost flat in the last three years. In 2002, it was around Rs 600 level and in today's trading the stock closed at Rs 615.90 on the BSE.