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United Phosphorus today informed the stock exchanges that the Competition Appellate Tribunal (COMPAT) has granted a stay against the order of the Competition Commission of India.
The Commission had earlier levied a penalty of Rs 252 crore on United Phosphorus on charges of violating laws relating to production controls and collusive bidding.
Penalty
United Phosphorus is, however, required to deposit 10 per cent of the penalty amount with the Registrar of COMPAT within eight weeks. “The company is seeking further clarifications from COMPAT in this regard,” United Phosphorus said in a notification to the stock exchanges today. United Phosphorus, which was incorporated in 1969, is a global player in the agro-chemicals industry, and ranks among the top five generics agro-chemicals companies in the world. In the first quarter of the current year, the company reported a turnover of Rs 2,142 crore, and a net profit of Rs 215 crore. Each share, of face value of Rs 2, earned Rs 3.9.
In 2011-12, the company had achieved a turnover of Rs 7,654 crore, on which it made a net profit of Rs 641 crore.
United Phosphorus share traded around Rs 122.95, which is Rs 1.45 higher than the previous close on the BSE today.
Share buyback
The management has announced a share buyback programme to buy 192 crore shares from the open market at a price not exceeding Rs 150 a share. According to a recent report of Angel Research, the company has bought back 4.5 million shares so far.
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