Mumbai, Sept. 4: Britannia Industries Ltd today announced a share buy-back price of Rs 650 per share. The company has reserved an aggregate amount not exceeding Rs 92 crore for this scheme.
The buyback, which will open on September 5, will close on August 5, 2003, Britannia told the stock exchanges today. News of the buyback was accompanied by the Britannia scrip finishing higher by 1.5 per cent at the bourses today. Opening at Rs 532.90, the scrip rose to an intra-day high of Rs 582 after which it finished sharply lower at Rs 539.05.
Market circles said that the selling followed disappointment over the price, which comes at a discount to its buyback price announced last year. Then, the biscuit major had announced plans to buy back up to one million shares at a price not exceeding Rs 750 per share.
At the time of the company’s first buyback plan, France’s Group Danone owned close to 25 per cent of the company with Nusli Wadia, who is also reported to have held a similar stake in the company.
Britannia, which is a major player in the bakery segment, has recently ventured into other areas such as dairy products. The company which has identified dairy business as a significant area of growth (which includes cheese, dairy whiteners), is expecting contribution from this segment to touch more than 25 per cent of its turnover in the next couple of years.