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The Engineers India Ltd (EIL) Board has approved a proposal to buyback 6.98 crore equity shares of face value of ₹5 each.
In a statement to BSE, EIL said the approved buyback represents 11.06 per cent of the total number of fully paid-up equity shares in the share capital of the company. The EIL board will be buying back shares at ₹84 per equity share. The company said the buyback will cost the company ₹586.90 crore.
Stock rules at ₹70.70
Shares of the company closed 0.57 per cent higher at ₹70.70 a scrip on BSE.
EIL’s share price had jumped 4.47 per cent to ₹70.10 on November 10 after the company said its board will consider a share buyback on Thursday.
The Centre is looking to boost its coffers through divestment proceeds via buybacks. The Department of Investment and Public Asset Management is said to be eyeing buybacks in eight public sector undertakings including Coal India and NTPC.
EIL said the buyback will be on a proportionate basis through a tender offer route.
Net up 32%
EIL also reported a ₹88.32-crore consolidated profit for the second quarter of financial year 2020-2021. This is 32 per cent higher than the ₹66.59-crore consolidated profit reported by the company in the same period of the previous financial year.
Consolidated total income for the period under review stood at ₹741.88 crore, down from ₹793.58 crore reported during the corresponding months of fiscal 2019-2020.
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