Atul Share Buyback: This Midcap Stock Announced Rs 50 Crore Buyback To Reward Shareholders; Shares Fall

The Board of Directors of Atul Ltd on Tuesday approved the Buy-back of fully paid up Equity Shares by the Company having a face value of Rs 10/- each at a price not exceeding Rs 7,500 per share from open market through stock exchanges NSE and BSE Limited for an amount not more than Rs 50,00,00,000. At 11:10 am IST today, the share price of Atul Ltd was trading 2.57% lower at Rs 6,536 per share.

In an exchange filing, the company said, "The Board of Directors of the Company, at its meeting held today, i.e., November 07, 2023, has approved the Buy-back of fully paid up Equity Shares by the Company having face value of Rs 10/- each from open market through stock exchanges for an amount not exceeding Rs 50,00,00,000/- at a price not exceeding Rs 7,500/- (Rupees seven thousand five hundred only) per Equity Share..."

The company will conduct the buyback via the open market route, which means that there will be no pre-determined price at which the shares will be repurchased. The company is looking to buyback up to 66,666 equity shares from existing shareholders.

Given the maximum buyback price of Rs 7,500 per share, it is only a 11.79% premium from Monday's closing price of Rs 6,708.70.

The maximum number of Equity Shares that can be repurchased under the Buy-back offer:

At the Maximum Buy-back Size and the Maximum Buy-back Price, the indicative maximum number of Equity Shares to be bought back under the Buy-back would be 66,666 Equity Shares which represents 0.23% of the total number of outstanding Equity Shares of the Company. The Gujarat-based integrated chemical company said that the number of Equity Shares bought back under the Buy-back will not exceed 25% of the total number of Equity Shares of the Company.

Post Buy-back shareholding pattern of Atul Ltd:

In case all the planned 66,666 shares are repurchased from the Open Market, the promoter holding in the company will increase from 45.06% to 45.16%, while the public holding will come down to 54.84% from 54.94%.