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Our Bureau

Bangalore March 30

The board of directors of MRO-TEK approved the company's proposal to go in for a buyback of its equity shares through the stock exchange mechanism at prevailing market rates.

On Friday, the MRO-TEK board approved the buy-back of up to a maximum of 25.6 lakh shares of Rs 5 each. The buy-back will be based on the ruling prices at that particular time, subject to a maximum price of Rs 55 per share, a six per cent premium over closing price on March 29, said MRO-TEK in a notice to the stock exchanges on Friday.

The pricing has been arrived at after considering the stock market quotation, book value per share and the possible impact of the buyback may have on the earnings per share, the company said.

Finances Earmarked

MRO-TEK has earmarked up to a maximum of Rs 8.25 crore for the buy-back, which will be financed from the free reserves of the company. The actual number of the shares to be bought back would depend upon the average price paid for the shares bought back and the amount deployed in the buy-back. No promoter and no persons in the control of the company shall tender their equity shares to the company in the buy back, the company said.

MRO-TEK would soon announce the timing of the buy-back. "It is likely to happen sometime in mid-April," said Mr R. Ramaswamy, CFO of MRO-TEK.

Shares of MRO-TEK ended 1.45 per cent higher on the BSE to close at Rs 52.50 on Friday.

The company decided to go in for a buy-back as its stock price had fallen below its current book value. For the year-ended March 31, 2006, MRO-TEK's book value stood at 41.19.

Promoters held 35.78 per cent stake in the company, while the public shareholding stands at 64.22 per cent as of December 31, 2006.

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MRO-TEK gets board nod for buyback

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