Kolkata, May 21
Paints major ICI India Ltd will see a change of guard shortly. Mr Rajiv Jain will step down as Managing Director from June 1. Mr Amit Jain will succeed him.
Non-executive Directors, Mr M. V. Subbiah, will retire from the board at the end of the forthcoming AGM. Mr Nihal Kaviratne has been appointed an Additional Director from March 30.
The new Managing Director will inherit a company that is focused on paints alone as the adhesive and chemicals businesses have been sold.
The last profit and loss accounts signed by the outgoing Managing Director said profit on sale of adhesives business was of Rs 193.82 crore and profit on sale of its holding (67 per cent) in Polyinks amounted to Rs 11.51 crore.
The dividend recommended for 2008-09 is 80 per cent, double of what was paid in the previous year, as the company wished to distribute the non-operational and one-time profits.
The company is also on its way to reduce its paid up capital through a buyback plan in place. The size of buyback, which began on February 17 and would close on December 18, represents 25 per cent of the aggregate of the paid-up capital and free reserves of Rs 735.09 crore as on March 31, 2008. The maximum buyback price is Rs 575 a share and total value ceiling is Rs 183.77 crore.
Till May 19, the company has bought back and extinguished 1,65,789 shares. Till March 31 it had bought back 1.50 lakh shares for an aggregate consideration of Rs 6.25 crore, bringing the total number of shares bought back during the year, including those bought back in respect of the earlier scheme approved on July 12, 2007, to 3.11 lakh shares, for a total consideration of Rs 15.36 crore.
The results for the year ended March 31, 2009, because of the change in business configuration, are not comparable with the previous year.
On a comparable basis, however, during the year, sales from continuing businesses grew by 11 per cent and the corresponding segment profit increased by 26 per cent.
The register of members and share transfer books of the company will remain closed from July 1 to July 16 (both days inclusive) for the purpose of payment of dividend.
The stock closed up over 2 per cent at Rs 509.40 on Thursday.