The Board of Directors of Emami Limited ("Company") at its meeting held today i.e. on 24th March 2023, has approved the proposal to Buyback Equity Shares of the Company.
The board approved the proposal of Buyback of fully paid-up equity shares having a face value of Re. 1/- (Rupee One only) each of the Company at a price not exceeding ₹ 450/- (Rupees Four Hundred Fifty only) per equity share ("Maximum Buyback Price") and for an aggregate amount not exceeding ₹ 18,600 Lakhs (Rupees Eighteen Thousand Six Hundred Lakhs only) ("Maximum Buyback Size"), from the shareholders of the Company (other than the promoters, the promoters group and persons in control of the Company) payable in cash via "Open Market" route through the stock exchange mechanism which is not more than 10% of the aggregate of the total paid-up share capital and free reserves of the Company, based on the lower of the latest audited standalone and consolidated financial statements of the Company as on March 31, 2022, in accordance with the provisions under the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018, as amended ("Buyback Regulations") and the Companies Act, 2013, as amended, and other applicable provisions (the process hereinafter referred to as the "Buyback").
At the Maximum Buyback Size and the Maximum Buyback Price, the indicative maximum number of equity shares to be bought back under the Buyback would be 4,133,333 Equity Shares (representing 0.94% which is less than 25% of the existing paid up equity capital of the Company). The Maximum Buyback Size represents 9.94% and 9.99% of the aggregate of the total paid-up equity share capital and free reserves of the Company based on the latest audited standalone and consolidated financial statements of the Company as on March 31, 2022, respectively. The actual number of equity shares bought back during the Buyback will depend upon the actual price, excluding the Transaction Costs, paid for the equity shares bought back and the aggregate consideration paid in the Buyback, subject to the Maximum Buyback Size.
The Company shall utilise atleast 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.
Maximum Buyback Size shall not include any other expenses incurred or to be incurred for the Buyback like filing fees payable to SEBI, brokerage cost, filing fees, advisory fees, intermediaries' fees, public announcement publication expenses, printing and dispatch expenses, applicable taxes such as buyback tax, securities transaction tax, goods and services tax, stamp duty etc. and other incidental and related expenses) ("Transaction Cost").
The Board has also constituted a committee for the purposes of the Buyback (the "Buyback Committee") and has delegated its powers to the Buyback Committee to do or cause to be done all such acts, deeds, matters and things, in its discretion, deem necessary in connection with the Buyback.
Shares of Emami Limited was last trading in BSE at Rs. 364.25 as compared to the previous close of Rs. 365.95. The total number of shares traded during the day was 40094 in over 1881 trades.
The stock hit an intraday high of Rs. 374.85 and intraday low of 361.95. The net turnover during the day was Rs. 14731982.00.