Buyback Approved, Emami is ready to increase its promoter holding

On March 24, Emami Board of directors agreed for around Rs 186 crore shares buyback plan. The board had agreed on a buyback plan for 41.3 lakh equity shares with a face value of Rs 1 each at a maximum price of Rs 450 per share.

The buyback will be done via open market and in cash. It will not exceed 10% of the sum of the company’s total paid-up share capital and free reserves. The Emami Buyback will be funded by shareholders of the company. The amount designated as the “Maximum Buyback Size” will be used by the corporation to the extent of at least 75%, or Rs 139.50 crore. Also, the corporation shall use at least 40%, or Rs 74.40 crore, of the funds designated within the first three months after the buyback’s inception. In addition, the board established a committee for the buyback and gave it authority, according to the exchange filing. According to the company filing, the public announcement outlining the procedure, deadlines, and other legal specifics of the buyback will be made available when it is appropriate and in accordance with the buyback regulations.

Emami Limited is an Indian conglomerate company headquartered in Kolkata, West Bengal. The company was founded in 1974 by R.S. Agarwal and R.S. Goenka, and has since grown to become one of the leading players in the Indian fast-moving consumer goods (FMCG) industry. Emami Limited operates in a wide range of sectors, including healthcare, personal care, home care, and beauty and grooming products. Some of its best-known brands include Boroplus, Navratna, Zandu, Fair and Handsome, and Kesh King. The company also has a significant presence in international markets, with exports to more than 60 countries worldwide. In addition to its consumer goods business, Emami Limited also has interests in real estate, paper, and renewable energy.

On NSE at 11:00 a.m., Emami shares were trading at Rs 355 — up by 1.53%.

What is buyback?

When a company purchases its own shares on the stock market, this is known as a “buyback