FMCG maker Emami Ltd on Thursday said its board has approved a share buyback of up to ₹282 crore through the open market route at a maximum price of ₹475 per equity share.
In this proposed buyback, the first since 2023, the company will buy back up to around 59.37 lakh equity shares, representing around 1.36 per cent of its paid-up equity share capital.
In a stock exchange filing, the company said it would utilise at least 75 per cent of the amount earmarked as the maximum buyback size, i.e., ₹211.50 crore.
“Based on the Minimum Buy Back Size and Maximum Buy Back Price, the company would purchase an indicative minimum of 44,52,632 equity shares. Further, the company shall ensure at least seventy-five per cent of the amount earmarked for buy-back, will be utilized for buying-back equity shares and 40 per cent of Maximum Buyback Size i.e. ₹112.80 crore is utilised within the initial first half from the opening of the offer,” it said.
Buyback price at 28.6% premium
Notably, the maximum price of ₹475 per equity share is around 28.6 per cent premium over the stock’s previous closing price on Wednesday. On Thursday, the scrip ended the day at ₹376.10 apiece on BSE, up 1.80 per cent from the previous close.
In the buyback, the company will buy shares from eligible public shareholders, excluding promoters, members of the promoter group, persons in control, and their associates. According to the company’s shareholding pattern, promoter and promoter group holding is expected to rise to 55.60 per cent from 54.84 per cent, assuming the company buys back the maximum 59.37 lakh shares.
Emami profit falls 15% in Q1
Emami reported around a 15 per cent year-on-year fall in its consolidated net profit to ₹138.94 crore for the first quarter this fiscal, as higher input costs due to the West Asia conflict impacted its profitability.
The company had posted a net profit of ₹164.26 crore for the first quarter last fiscal. For Q1FY27, the Kolkata-based company’s revenue from operations grew around 15 per cent to ₹1,039.21 crore.