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Praj Industries will begin buyback of its fully paid up equity shares of face value Rs 2 from the open market on December 26.The offer will be effective for one year, or earlier if the maximum buy back size is achieved before Dec 25, 2012.
The Pune-based company has fixed the maximum buyback price at Rs. 90 per equity share for a total amount not exceeding Rs. 558.639 million. This, the maximum buyback size, represents 10% of the aggregate of the Company’s paid-up equity capital and free reserves of Rs. 5586.392 million as on March 31, 2011.
Given the maximum price of Rs. 90 per equity share and size the maximum number of equity shares that can be bought back would be 6,207,100 representing 3.36% of the pre-buyback outstanding fully paid up equity shares of the Company as on December 03, 2011.
Praj proposes to buyback a minimum of 1,551,775 equity shares. However, the maximum number of equity shares that it can buy back will not exceed 10% of the Company’s total paid up equity capital.
Dr Pramod Chaudhari, Chairman, Praj, said that the buyback was to reward its shareholders.
On the BSE, the company’s share rose by 2.61% on Thursday to close at Rs 74.65.
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