The board of Welspun India on Tuesday has approved a proposal for the buyback of shares for an aggregate amount of Rs. 200 crore at a price of Rs. 120 per share. On Tuesday, the shares of the company closed below one per cent at Rs 97.30 apiece as compared to the previous close of Rs 98.30 per share.
The company had already made an announcement of Buyback, however, released the details of the same on Tuesday.
Welspun India in its filing to exchanges said, “The board has approved a proposal for the buyback of not exceeding 1,66,66,666 equity shares of face value Re 1/- each representing 1.66 per cent of the total number of fully paid-up equity shares in the paid-up share capital of the company.”
The shares will be at a price of Rs 120 per share payable in cash for an aggregate consideration not exceeding Rs 200cr representing 6.36 and 6.04 per cent of the aggregate of the fully paid-up equity share capital and free reserves (including securities premium), the company said in a statement.
Amid quarter four results, Welspun India on Friday (May 14) touched its life high at Rs 104 per share. The shares of the company soared around 17 per cent in the last five sessions.
The company, on May 14, had reported a 48.3 per cent jump in consolidated net profit to Rs 134.34 crore in the March-ended quarter of the financial year 2020-2021 as against Rs 90.59 crore in Q3 FY20.
The total income during the quarter under review stood at Rs 2,173.56 crore as against Rs 1,664.46 crore in the corresponding quarter a year ago, Welspun India had said in a regulatory filing.
The company will be re-working with US retail giant Target Corporation again, almost five years when the latter terminated the contract. The contract was revoked over alleged lapses in labelling and marketing of Egyptian cotton products.