FMCG Stock Approves Buyback Of Equity Shares Upto Rs 450 Via "Open Market" Route

Emami Ltd., a midcap FMCG sector company, today, March 24, 2023, Approved the proposal to Buyback Equity Shares of the Company. According to the company's filing with the exchanges, the board of Emami Limited approved the buyback of equity shares worth Rs 18,600 lakh at a price of Rs 450 per share.

Approved the proposal to Buyback Equity Shares of the Company

According to the company's exchange filing, "Approved the proposal of Buyback of fully paid-up equity shares having a face value of Re. 1/- (Rupee One only) each of the Company at a price not exceeding ₹ 450/- (Rupees Four Hundred Fifty only) per equity share ("Maximum Buyback Price") and for an aggregate amount not exceeding ₹ 18,600 Lakhs (Rupees Eighteen Thousand Six Hundred Lakhs only) ("Maximum Buyback Size"), from the shareholders of the Company (other than the promoters, the promoters group and persons in control of the Company) payable in cash via "Open Market" route through the stock exchange mechanism which is not more than 10% of the aggregate of the total paid-up share capital and free reserves of the Company, based on the lower of the latest audited standalone and consolidated financial statements of the Company as on March 31, 2022, in accordance with the provisions under the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018, as amended ("Buyback Regulations") and the Companies Act, 2013, as amended, and other applicable provisions (the process hereinafter referred to as the "Buyback")."

It added, "At the Maximum Buyback Size and the Maximum Buyback Price, the indicative maximum number of equity shares to be bought back under the Buyback would be 4,133,333 Equity Shares (representing 0.94% which is less than 25% of the existing paid up equity capital of the Company). The Maximum Buyback Size represents 9.94% and 9.99% of the aggregate of the total paid-up equity share capital and free reserves of the Company based on the latest audited standalone and consolidated financial statements of the Company as on March 31, 2022, respectively. The actual number of equity shares bought back during the Buyback will depend upon the actual price, excluding the Transaction Costs, paid for the equity shares bought back and the aggregate consideration paid in the Buyback, subject to the Maximum Buyback Size."

It further added, "The Company shall utilise atleast 75% of the amount earmarked as the Maximum Buyback Size for the Buyback i.e. ₹ 13,950 Lakhs (Rupees Thirteen Thousand Nine Hundred Fifty Lakhs only) ("Minimum Buyback Size"). Based on the Minimum Buyback Size and Maximum Buyback Price, the Company would purchase indicative minimum number of 3,100,000 Equity Shares."

Furthmore, "Further, the Company shall utilize a minimum of 40% of the amount earmarked for the Buy-back i.e. ₹ 7,440 Lakhs (Rupees Seven Thousand Four Hundred Forty Lakhs only) within the initial half of the six months of the opening of the Buyback."

Emami Ltd. Shares

Emami shares currently trading at Rs 360.35 apiece on the NSE, down by Rs 1.03%. On March 20, 2023, the stock hit the new 42 week low at Rs 340.55 apiece, while the 52 week high it hit on 26 September 2022 at Rs 524 apiece.

The stock in the past 5 years has given mix returns. In the past 1 week, it has given 2.39% positive return and fallen 5.72% in the past 1 month. In the past 1 year it has given 20.1% negative return. In 3 years it has given 133.27% positive return. In 5 years it has given 32.08% negative return.

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