Mumbai, Aug. 28: Bombay Dyeing & Manufacturing Company Ltd has decided to buy back between 10-25 per cent of the company’s equity for up to Rs 65 per share from the open market through the stock exchanges.
The company, in a statement issued to the bourses today, said it has earmarked not more than Rs 31.98 crore for the buy back scheme. Incidentally, the price announced today is higher than Rs 60 per share for its earlier buyback offer which had commenced on September 7.
Bombay Dyeing said its board has approved the buy back of fully paid-up equity shares of the face value of Rs 10 each up to or less than 10 per cent of the equity and free reserves of the company, but not exceeding 25 per cent of the paid-up equity.
On the BSE today, the scrip closed lower by 261 per cent at Rs 50.40, as against its previous close of Rs 51.75.
This second buy back by Wadia follows the earlier one which commenced on September 7 last year which saw his holding in Bombay Dyeing rise close to 43 per cent, from 41 per cent in June last year. In September last, Bombay Dyeing said in accordance with various provisions, the maximum amount allowed to be utilised for implementing the programme was Rs 143.40 crore, representing 25 per cent of the paid-up capital and free reserves of the company.
Bombay Dyeing in its recent communication to the bourses said following its buyback initiated last year, over 18.26 lakh shares have been extinguished as of June 30, 2002. This saw the number of paid-up equity shares come down to around 3.91 crore from 4.10 crore shares.