Promoters of Maharashtra Seamless to buy back Rs 100-cr shares

Pipe maker Maharashtra Seamless today said its promoters will buy-back shares worth Rs 100 crore.

"The Board of Directors at its meeting held on April 8, 2013 approved the proposal for buyback of fully paid-up equity shares of the face value of Rs 5 each from the open market," Maharashtra Seamless said in a BSE filing.

"The Board has proposed a maximum limit of up to Rs 100 crore, excluding brokerage costs, SEBI turnover charges...At a maximum buy-back price not exceeding Rs 300 per equity share," it added.

Shares of the company were trading at Rs 216.35 apiece, down 2.85% during the afternoon trade on the BSE. As on March-end, company promoters had 55.55% stake.

Maharashtra Seamless said the price has been arrived at after considering factors such as average price of the equity shares of the company, the impact of buy-back on the earning per share and the book value of the company.

The aggregate paid-up capital and free reserves of the company, as at March 31, 2012, is Rs 2,083.39 crore.

The share buyback is proposed to start on May 14, 2013 and remain open till April 7, 2014 or till the time the firm completes the buy-back to the extent of Rs 100 crore, it said.