Mumbai, Dec. 9: Kesoram Industries Ltd, flagship company of the B K Birla group, today announced a buy-back programme at a price of up to Rs 40 per share for mopping up a maximum of 25 per cent equity.
The company told stock exchanges that, at a board meeting held today, the directors decided to buy back its shares through market operations. It added that while the number of shares mopped up from the market will not exceed 46,25,000, the price will be up to Rs 40 per share and that the maximum purchase consideration will be Rs 18.5 crore.
The buy back of shares will not exceed 25 per cent of its paid up equity capital as on March 31, 2002.
Kesoram Industries had reported a net loss of Rs 3.91 crore for the quarter ended September 30, 2002 compared with a net profit of Rs 2.04 crore in the corresponding previous quarter. Total income (net of excise) decreased from Rs 290.48 crore to Rs 275.52 crore during the quarter.
It may be recalled that earlier shares of the company being cornered by an unidentified Dubai-based investment banker had made headlines. A total of 45 lakh shares (8.6 per cent of the total equity) were then reported to have been picked up by the Dubai-based banker.