Emami to buy back shares at ₹450 Per share, worth up to ₹186 crore
1 min read 24 Mar 2023, 06:56 PM ISTThis buyback is set at a premium of around 24% above Emami's current share price of around ₹362.55 apiece on the NSE
PremiumEmami Ltd, a multinational conglomerate headquartered in Kolkata, has announced a proposal for a buyback of shares worth up to ₹186 crore. The buyback price has been set at ₹450 per share, according to an exchange filing on Friday.
This buyback is set at a premium of around 24% above Emami's current share price of around ₹362.55 apiece on the NSE. The buyback will be executed through the open market route via stock exchange mechanisms.
“The Company shall utilise at least 75% of the amount earmarked as the Maximum Buyback Size for the Buyback i.e. ₹ 13,950 Lakhs (Rupees Thirteen Thousand Nine Hundred Fifty Lakhs only) (“Minimum Buyback Size"). Based on the Minimum Buyback Size and Maximum Buyback Price, the Company would purchase indicative minimum number of 3,100,000 Equity Shares. Further, the Company shall utilize a minimum of 40% of the amount earmarked for the Buy-back i.e. ₹ 7,440 Lakhs (Rupees Seven Thousand Four Hundred Forty Lakhs only) within the initial half of the six months of the opening of the Buyback", the press release said.
Emami currently trades at a PE of 19.20, with a trailing 12 month EPS of 18.88. Its FY23/24 estimated PE ratios stand at 23.21/19.74. The company's current market cap is ₹15993.8 crore, according to Bloomberg data.
Emami's consolidated Profit after tax in Q3 FY23 was Rs. 237 crore, which represents an 8% growth over the previous year, revenues were Rs. 983 crore, which grew by 1%. Gross margins contracted by 150 basis points due to inflationary pressure and favorable portfolio mix last year, and EBIDTA declined by 14% over the previous year due to inclusion of new subsidiary costs, and strategic outlays on distribution expansion in rural, digital and modern trade channels.
The record date for Emami's buyback of shares has not yet been announced.
