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Our Bureau

Hyderabad, Sept. 1 The board of directors of Rain Commodities Ltd has approved buyback of its fully paid-up equity shares from the open market.

The company would purchase equity shares of Rs 10 each for an amount not exceeding Rs 26 crore at prevailing market price on the stock exchanges. The board, however, had imposed a cap of Rs 307 for an equity share and 12 lakh shares in the buyback.

The decision was taken based on the “current satisfactory operations of the company after completion of expansion projects and absence of substantial capex plans in near future”, the Hyderabad-based company informed the BSE.

The move was also aimed at “maximising returns to investors and enhance overall shareholder value by returning surplus funds to shareholders in an investor-friendly manner and as an efficient mechanism for providing an exit opportunity to those shareholders who desire to do so”, it said. The company’s scrip closed at Rs 222.15 at BSE on Monday and registered an increase of 2.66 per cent.

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