New Delhi, Sept. 5: The board of directors of Dabur India has adopted an enabling resolution for a share buy back at the annual general meeting held here today. The company, however, said it does not plan to buy back its shares in the near future.
“Dabur India does not have any immediate plans to buy back its shares. This is just an enabling resolution that was adopted by the board to provide flexibility in case any such requirement is felt in future,” group director (commercial & corporate affairs) P. D. Narang said while elaborating on the need for adopting this resolution.
Dabur India has a capital base of Rs 28.5 crore, with 28.5 crore shares of face value f Re 1 per share. The promoters hold 78.5 per cent in the company while institutions and public hold the balance 21.5 per cent.
The board of directors also adopted the audited balance sheet of the company as on March 31, 2002, and confirmed the interim dividend as final dividend already paid for the financial year ended March 31, 2002, during the AGM.
During the year 2001-02, the board of directors did not recommend payment of any final dividend due to the additional investment of Rs 50.61 crore that was made in an oncology plant at UK. The interim dividend of 50 per cent, which was paid during December 2001, was taken as the final dividend. The company also reconstituted its board last fiscal and reduced its size from 16 to 10 with the chairman playing a non-executive role. During the current year, the pharmaceuticals business of Dabur has been operationally separated with a separate management team and dedicated resources.
Dabur registered a growth of 30.7 per cent in its net profit to Rs 11.50 crore and a 6.9 per cent growth in turnover during April-June 2002.