Rain Commodities to buy back 4.56 mn shares

Hyderabad-based cement manufacturer Rain Commodities Limited (RCL) stated that its board has approved buy-back of up to 4.56 million shares accounting for 11.58 per cent of the paid-up equity share capital of the company.

The shares would be purchased for a maximum price of Rs 127 per share of Rs 10 each from the open market and for a total amount not exceeding Rs 51.52 crore, the company stated in a release to the Bombay Stock Exchange.

The maximum buy-back price is at a premium of 65.9 per cent on the closing price of the company’s shares on the BSE on March 27, the last trading day preceding the date of the board meeting. The company's stock price on BSE closed at Rs 86.35 on Monday, up 12.8 per cent, compared with the previous trading day's close of Rs 76.35.

According to RCL, the proposed buy-back of shares will increase the earnings per share with reduction in outstanding equity shares of the company, improve return on networth and maximise shareholders value.