Vardhman Textiles gains as board approves share buyback proposal

The stock rallied 7% to Rs 1,108 after the board approved a buyback of 6.13 million equity shares for Rs 1,175 per share

Vardhman Textiles has rallied 7% to Rs 1,108 on the BSE in an early morning trade after the company announced that the board approved a buyback of 6.13 million equity shares for Rs 1,175 per share.

“The board has approved the proposal to buy-back the equity shares from the shareholders of the company on proportionate basis through tender offer. The buyback shall be up to an aggregate amount not exceeding Rs 720 crore, at a maximum price of Rs 1,175 per share,” Vardhman Textiles said in a statement.

The promoters of the company have indicated their intention to participate in the proposed buyback in such a manner that their aggregate shareholding percentage in the company remains atleast 60% of the post buyback total paid up capital of the company.

At 09:27 am, the stock was up 5% at Rs 1,090 on the BSE, as compared to 0.41% decline in the S&P BSE Sensex. A combined 138,519 shares changed hands on the counter on the BSE and NSE so far.