Calcutta, Aug. 2 :    Calcutta, Aug. 2:  Electrosteel Castings Ltd (ECL), the Rs 557-crore cast and ductile iron pipe manufacturing company, is considering a proposal to buy back 25 per cent of its equity either through tender offer or through market operations. Market sources said the city-based company, which has grown by around 80 per cent in the past four years, is likely to invest around Rs 150 crore to buy back shares. ECL will seek the shareholders' approval in this regard through a special resolution in the forthcoming annual general meeting. Sources said the company has huge surplus reserves which could be deployed to buy back shares. Moreover, the share price is currently very low compared with the company's growth rate. 'If the share price and the surplus cash in hand are taken into account, it certainly makes sense to go for a buyback,' they added. The ECL scrip was quoted at Rs 82.50 on Tuesday on the National Stock Exchange. A senior company official said a resolution is being proposed that will enable the company to amend the articles of association to incorporate a new article 9A under the marginal note 'buy-back of shares or other specified securities.' It could, however, not be ascertained when and at what price the buyback will be made. Sources said the promoters' holding, which currently stands at over 62 per cent, will be well over 76 per cent if they don't lodge their shares during the offer. ECL, which saw its profit decline by 30 per cent in 2000-2001 due to recession, expects to bounce back to the growth path with rise in orders from the quake-hit Bhuj. According to one estimate, around 60,000 ductile pipes will be needed in the quake-hit areas to restore water management system. ECL has a production capacity of 1.5 lakh tonnes of ductile and cast iron pipes. Another 50,000 tonnes can also be added, if required, without making any significant investment. The company, which has two plants-one in Khardah near Calcutta and the other in Kerala- has plans to phase out the production of CI pipes over a period of time and replace it by DI pipes.