Chambal Fertilisers And Chemicals Okays Rs. 700 Cr Share Buyback; Record Date Fixed

Following a significant announcement for its shareholders, Chambal Fertilisers and Chemicals Ltd., a mid-cap firm in the commodity industry, gained today. Today's BSE opening price of the company was higher at Rs 375.30 per share. It reached an intraday high of Rs 385.35 per share, registering a gain of 3.35%. The rise in stock price on Monday following the company's approval of a share buyback programme for Rs. 700 crore via tender offer.

The Board of Directors of the company, at its meeting held today i.e. January 8, 2024, "approved buyback of fully paid-up equity shares of face value of Rs. 10/- each, not exceeding 1,55,55,555 equity shares (representing 3.74% of the total paid-up equity share capital of the Company as on March 31, 2023) at a price of Rs. 450 per equity share, payable in cash for an aggregate amount not exceeding Rs. 700 crore (Rupees Seven Hundred Crore only) excluding taxes payable under the Income Tax Act, 1961 and expenses incurred and to be incurred for the buyback, which is 9.82% and 9.52% of the fully paid-up equity share capital and free reserves as per the latest audited standalone and consolidated balance sheet of the Company for the financial year ended March 31, 2023," said Chambal Fertilisers and Chemicals in a stock exchange filing.

"Pursuant to Regulation 42 of the Listing Regulations and Regulation 9(i) of the Buyback Regulations, fixed January 18, 2024 as the 'Record Date' for determining entitlement and names of the eligible shareholders/beneficial owners to whom the letter of offer will be sent, and who will be eligible to participate in the buyback," informed Chambal Fertilisers and Chemicals in a regulatory filing.

For the second quarter of the current fiscal year, the firm recorded a 39% rise in its consolidated net profit, coming in at Rs 380.96 crore. Its net profit for the same quarter of FY23 was Rs 274.19 crore. According to a regulatory filing, total income plummeted to Rs 5,467.28 crore in the July-September fiscal year of 2023-24 from Rs 8,675.59 crore in the same period the previous year. From Rs 8,305.42 crore in Q2FY23 to Rs 4,894.72 crore in Q2FY24, the total expense dropped.

Headquartered in Kota, Rajasthan, Chambal Fertilisers and Chemicals Ltd is an Indian agrochemical manufacturing firm. The company is the main provider of fertiliser in the states of Rajasthan, Madhya Pradesh, Punjab, Uttar Pradesh, Bihar, Chhattisgarh, and Haryana. It serves farmers in the northern, eastern, central, and western regions of India.