Emami shares rise 8% as board mulls buyback plan
1 min read 22 Mar 2023, 03:40 PM ISTEmami's board of directors are scheduled to meet on Friday to consider a proposal for buyback of fully paid-up equity shares of the company
PremiumShares of homegrown FMCG firm Emami Ltd soared 8 per cent in Wednesday's trade, day after the personal care company announced a buyback plan.
Emami's board of directors are scheduled to meet on Friday, 24 March, 2023 to consider a proposal for buyback of fully paid-up equity shares of the company.
“We wish to inform you that a meeting of the board of directors of the company is scheduled to be held on March 24 to consider a proposal for buyback of fully paid-up equity shares of the company," Emami said in a filing.
The primary objective of a share buyback programme is to arrest the fall in the value of a stock by reducing its supply, which essentially pushes up the share price through a better price-to-earnings (P/E) multiple.
Further, the company said that the trading window for transacting in the securities of the firm would remain closed for all insiders or designated persons and their immediate relatives covered under the company's Code of Conduct from 21 March 2023, till 48 hours after the dissemination of the board's decision on buyback.
Shares of Emami settled at ₹366.40, up 6.20 per cent higher on Wednesday. The stock hit a 52-week low of ₹340.95 on 20 March, 2023. The stock has declined as much as 15 per cent so far this year. Further, in past six months, the stock has slipped 30 per cent, as compared to 1.5 per cent fall in the benchmark index.
