UPL ( United Phosphorous ) Share Buy back


UPL United Phosphorous ) Share Buy back  offer of Rs 1,100 crore  

Current Price -  798 (  Nse India)

UPL announced buyback of shares worth up to Rs 1,100 crore from shareholders, excluding promoters.

The maximum equity shares bought back would be 1,25,71,428 equity shares, or 1.65% of the total paid-up capital.

The buyback of shares will be at a price not exceeding Rs 875 per equity share through the open market route. 

The Board has constituted a buyback committee and has delegated the power to do all things at its discretion in connection with the buyback. While promoters hold 28 per cent in the company, foreign and domestic institutions own 42 per cent and 19 per cent, respectively. Retail investors account for about 11 per cent of equity holding.

The company earlier announced that its net profit in the December quarter was up 25 per cent to ₹1,179 crore against ₹944 crore in the same period last year. Its revenue increased 24 per cent to ₹11,297 crore (₹9,126 crore). The company will set the buyback period after getting the requisite shareholders’ approvals. The company will utilize at least ₹550 crore of the amount earmarked as the maximum buyback and would purchase a minimum of 62,85,714 equity shares, said UPL in a statement on Wednesday.

Subject to the market price of the equity shares being equal to or less than the maximum buyback price, it said the indicative number of equity shares bought back would be 1,25,71,428 equity shares equal to 1.65 per cent of the paid-up share capital of the company as of March 2.

If the equity shares are bought back at a price below the maximum buyback price, the actual number of equity shares bought back would exceed the proposed buyback shares, but will always be subject to the maximum buyback size, it added.