Techno Electric board OKs 130-cr buyback

The board of Techno Electric & Engineering Company approved a share buyback of upto Rs 130 crore at a price not exceeding Rs 325 per share through open market route.

The maximum buyback price of Rs 325 per equity share represents a 2.6% premium to Monday's closing price of Rs 316.75 on the BSE.

The indicative maximum number of equity shares bought back would be 40,00,000 equity shares, comprising approximately 3.64% of the total paid-up equity share capital of the company as of 11 July 2022.

The company shall utilize at least 50% of the amount embarked as the maximum buyback size for the buyback, i.e. Rs 65 crore ("minimum buyback size").

Based on minimum buyback size and the maximum buyback price, the company would purchase a minimum of 20,00,000 equity shares ("minimum buyback shares").

As on 8 July 2022, the promoters held 60.18% stake in the company and post buy back the stake is expected to increase to 62.45%, assuming that 40,00,000 eguity shares are bought back at maximum buyback price.

Techno Electric & Engineering Company is an engineering, procurement, and construction (EPC) player and green energy generator in the power sector.

The company reported 43.27% decline in consolidated net profit to Rs 37.09 crore despite of a 43.18% rise in revenue from operations to Rs 307.55 crore in Q4 FY22 over Q4 FY21.

Shares of Techno Electric & Engineering Company were down 4.97% to Rs 301 on the BSE.

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