Piramal Enterprises Limited (PEL) announced that it would buy back it shares worth of Rs 1,750 crore at Rs 1,250 per share through the tender route. The offer represents a premium of 16.5 percent over Friday’s Rs 1072.80 closing price.
In simple language, the company will buy shares from its investors at a 16.5 percent premium. Investors will get benefit from the move.
What has Piramal Enterprises said?
Piramal Enterprises, in a regulatory filing, said- We wish to inform you that the Board of Directors of the company in its meeting held on July 28, 2023, has approved the buyback of 1,40,00,000 equity shares. The total amount of this buyback with a face value of Rs 2 will not exceed Rs 1,750 crore.
What is the Record Date
The Board of the Company has fixed August 25 as the record date for the purpose of determining the eligibility and names of shareholders eligible to participate in the buyback.
It is the second buyback scheme of Piramal Enterprises, which has come after a period of 12 years. The first buyback took place in January-February of 2011. It was worth Rs 2508 crore.
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