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With a market worth of Rs. 2,267.95 Cr., Cosmo First Ltd. is a small-cap company that operates in the packaging industry. In a wide range of specialty films for flexible packaging, lamination, labelling, and industrial applications, Cosmo Films is a major player globally. The firm today announced yet another voluntary and proportionate buyback of fully paid-up equity shares obtained through the tender mechanism from the company's existing shareholders. The buyback price has been set at Rs. 1,070 for each equity share, representing a 29 per cent premium over today's closing price. The buyback will be up to 10.09 lakh shares at a size of 108 crores. The Board fixed December 14th, 2022 as the record date for the purpose of ascertaining the eligibility of the shareholders for the buyback.

Commenting on the buyback rationale, Mr Ashok Jaipuria, Chairman & Managing Director, said “Cosmo has always believed in sharing prosperity with its shareholders. The buyback reflects strong cashflows and management’s confidence in continued growth prospects in all its business verticals. The buyback will lead to further improved EPS, ROE and ROCE"

The company has said in a stock exchange filing that “In furtherance to our intimation dated November 28, 2022 and in terms of Regulation 30 read with Part A of Schedule III of the Listing Regulations, this is to inform that the Board of Directors of the Company, at its meeting held today i.e. December 01, 2022 has inter alia, approved Buyback of fully paid up Equity Shares of face value of Rs. 10 (Rupees Ten Only) each not exceeding 10,09,345 Equity Shares (representing 3.70%. of the total paid up equity share capital of the Company as on March 31, 2022 adjusted for Bonus Issue in June 2022) at a price of Rs. 1070/-per Equity Share (the "Buy Back Offer Price") payable in cash for an aggregate maximum amount not exceeding Rs.108,00,00,000/- (Rupees One Hundred and Eight Crore), excluding taxes payable under Income Tax Act, 1961 and any expenses incurred or to be incurred for the Buyback viz., brokerage, costs, fees, turnover charges, taxes such as securities transaction tax and goods and services tax (if any), stamp duty, advisors fees, printing and dispatch expenses and other incidental and related expenses and charges which represents 9.95% and 9.22% of the aggregate paid-up share capital and free reserves as per the audited standalone and consolidated financial statements of the Company respectively, for the financial year ended March 31, 2022 (the "Buyback"), on a proportionate basis, from all the shareholders of the Company who hold Equity Shares as of the Record Date through the "Tender Offer" route as prescribed under Securities and Exchange Board of India (Buy Back of Securities) Regulations, 2018, as amended (the "Buyback Regulations") and the Companies Act, 2013 and rules made thereunder (the "Act")."

The shares of Cosmo First closed today at 827.00 apiece, up by 3.01% from the previous close of 802.80. The stock recorded a total volume of 539,233 shares compared to the 20-Day average volume of 97,192 shares. The stock has produced a multibagger return of 251.57% over the past five years, and a multibagger return of 430.88% during the past three years. The stock has lost 7.32 per cent over the past year, and it has dropped 11.7 per cent YTD in 2022.

ABOUT THE AUTHOR

Vipul Das

Vipul Das is a Digital Business Content Producer at Livemint. He previously worked for Goodreturns.in (OneIndia News) and has over 5 years of expertise in the finance and business sector. Stocks, mutual funds, personal finance, tax, and banking are among his specialties, and he is a professional in industry research and business reporting. He received his bachelor's degree from Dr. CV Raman University and also have completed Diploma in Journalism and Mass Communication (DJMC).
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