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Film exhibitor and distributor PVR Ltd today said its board has approved the buyback of about 18 lakh shares for Rs 26.22 crore, which will close in May next year.
In a filing to the Bombay Stock Exchange, the company said its board of directors has approved buying “fully paid equity shares of Rs 10 each for an amount not exceeding Rs 26.22 crore, being 6.9 per cent of paid-up share capital and free reserves as on March 31, 2011, for a price not exceeding Rs 140 per share.”
The buyback period will close on May 26, 2012, even if the shares bought back are less than the minimum offer, it said.
The number of shares to be bought back would be between 5.62 lakh shares (minimum offer shares) and 18.72 lakh shares (maximum offer shares). The company will implement the buyback from current surplus and/or internal accruals.
The PVR Ltd Group President and CEO, Mr Pramod Arora, had said the reasons for the buyback were that the stock was underpriced and the buyback will help increase the earnings per share.
Meanwhile, the company shares surged by 11.42 per cent to trade at Rs 111.25 on the BSE during the end of the session.
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