Chambal Fertilisers buyback: Price fixed at ₹450 per share. Record date next week

Chambal Fertilisers buyback: The board of directors of Chambal Fertilisers and Chemicals Ltd has declared a buyback of shares at ₹450 per share. The company board has also fixed record record date for the buyback of shares on 18th January 2024, i.e. on Thursday next week. In its meeting on Monday, the company board considered and approved the buyback of shares via tender route.

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Chambal Fertilisers buyback details

Informing Indian stock market exchanges about buyback of shares, Chambal Fertilisers and Chemicals Ltd said, "In pursuance of Regulation 30 of the Listing Regulations, we wish to inform you that the Board of Directors of the Company, at its meeting held today i.e. January 8, 2024, have approved buyback of fully paid-up equity shares of face value of Rs. 10/- each, not exceeding 1,55,55,555 equity shares (representing 3.74% of the total paid-up equity share capital of the Company as on March 31, 2023) at a price of Rs. 450 per equity share, payable in cash for an aggregate amount not exceeding Rs. 700 crore (Rupees Seven Hundred Crore only) excluding taxes payable under the Income Tax Act, 1961 and expenses incurred and to be incurred for the buyback, which is 9.82% and 9.52% of the fully paid-up equity share capital and free reserves as per the latest audited standalone and consolidated balance sheet of the Company for the financial year ended March 31, 2023, respectively, on a proportionate basis from all existing shareholders of the Company as on the record date, through the “Tender Offer” route in accordance with the provisions contained in the Companies Act, 2013 and the rules made thereunder and the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018 (“Buyback Regulations”)."

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Chambal Fertilisers buyback record date

The board of directors of Chambal Fertilisers and Chemicals Ltd also fixed record date for the buyback of shares citing, "Pursuant to Regulation 42 of the Listing Regulations and Regulation 9(i) of the Buyback Regulations, fixed January 18, 2024, as the ‘Record Date’ for determining entitlement and names of the eligible shareholders/beneficial owners to whom the letter of offer will be sent, and who will be eligible to participate in the buyback."

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Comparing the Chambal Fertilisers buyback price with Chambal Fertilisers share price, the buyback has been offered at more than 15 per cent premium as Chambal Fertilisers share price oscillated around ₹380 apiece levels on NSE on Tuesday.

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