United Phosphorus to buy back 1.92 cr shares worth Rs 288 cr

Company would buy the shares at a price not exceeding Rs 150 per share, 25% higher than the current market price

United Phosphorus today announced a buy-back of 1.92 crore equity shares for up to Rs 288 crore from the open market.

The company would buy the shares at a price not exceeding Rs 150 per share, which is over 25% higher than the current market price of Rs 119.65 per share.

In a filing to the BSE, the company said, "The board of directors...Have unanimously approved the buy-back of equity shares up to 1,92,00,000 fully paid up equity shares of Rs 2 each."

The price of the share should not exceed Rs 150 per equity share and should be payable in cash up to an aggregate amount not exceeding Rs 288 crore from the open market through stock exchanges, the filing added.

The leading chemical manufacturer had reported a marginal decline in its net profit at Rs 555.55 crore in the last fiscal from Rs 557.64 crore in the 2010-11 fiscal.

Last month, the Competition Commission of India (CCI) had imposed a fine of Rs 252.44 crore on the company for collusive bidding and cartelisation in supplying aluminium phosphide tablets, used to preserve foodgrains, to Food Corporation of India.

The company has said it will move the Competition Appellate Tribunal against the fine imposed on it by CCI over the allegations.

The Mumbai-based company is a global generic crop protection, chemicals and seeds major.

Shares of the company today declined by 0.21% to settle at Rs 119.65 a piece on the BSE.