Cheviot Company soars after board OKs share buyback

Cheviot Company surged 6.98% to Rs 1465 after the company's board approved a proposal to buyback equity shares worth upto Rs 43.12 crore.

On the BSE, 48,234 shares were traded in the counter so far compared with average daily volumes of 6,693 shares in the past two weeks. The stock hit a high of Rs 1500 and a low of Rs 1401.45 so far during the day.

The company has proposed to buyback up to 2,50,000 equity shares, comprising 3.99% of the total paid-up equity capital of the company, at Rs 1,725 per share, for an aggregate amount not exceeding Rs 43.12 crore.

The buyback price represents 25.96% premium as compared to Friday's closing price of Rs 1369.45 per share.

The promoter and promoter group have expressed their intention to participate in the proposed buy-back under tender offer route, the company said.

While the promoters held 74.7747% stake in the company, the remaining 25.2253% stake was held by the public shareholders as on 4 December 2021.

The board has fixed Friday, 17 December 2021, as the 'record date' for the purpose of the buyback.

Cheviot Company is the flagship company of Group Cheviot. It owns Cheviot Jute Mills in West Bengal. The company manufactures jute products and jute fabrics with the flexibility to cater to both domestic and international markets. The company is renowned for manufacturing superior quality technical jute fabrics and fully customized jute shopping bags for the export market at the export-oriented unit situated at Falta Special Economic Zone in the state of West Bengal, India.

The company's net profit rose 77.09% to Rs 25.43 crore on a 36.23% increase in net sales to Rs 128.98 crore in Q2 FY22 over Q2 FY21.

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