| Ram: Tight hold
New Delhi, Aug. 23 (PTI): Arun Bharat Ram’s SRF Polymers today announced an equity buyback plan from August 30, which envisages an increase in the promoters’ stake by over 8 per cent to 34.92 per cent on a maximum investment of Rs 3.39 crore.
The buyback, which will remain open till October 29 this year or till the time the company has bought back just below 25 per cent of its equity, is priced at Rs 21 per share.
At present, the aggregate shareholding of the promoter group, directors of promoters (where the promoter is a company), and of the persons who are in control of the company as well as persons acting in concert is 16,89,652 equity shares or 26.19 per cent of SRF Polymers’ paid-up equity.
The buyback has been announced after the company’s board of directors approved the scheme on August 6.
It envisages purchase of up to 16,13,000 equity shares of SRF Polymers by the company from the open market.
“In the board’s view, the current market valuation of the company does not appropriately reflect its intrinsic value. The buyback is expected to lead to reduction in outstanding shares, improvement in earnings per share and enhanced return on invested capital,” the company said while announcing the buyback programme.
SRF Polymers has appointed ICICI Brokerage Services as the broker for this buyback programme, keeping in mind Sections 77A, 77AA and 77B of the Companies Act.
Formerly known as SRF Chemicals Ltd, SRF Polymers was incorporated in March 2000. With effect from Jaunary 1, 2001, the entire undertaking as a whole, comprising the entire business, properties and assets of the three businesses of SRF Ltd were amalgamated within the company.
These businesses include engineering plastics, fishnet twine and polyester films.
At present, the company manufactures engine polymers, nylon chips, polymer chips, fishnet yarn/twine, polyester film and allied products. Total income for the 12 months ended March 31, 2002, was Rs 13.03 crore with net profit at Rs 3.24 crore. The company’s net worth stood at Rs 47.85 crore.