Vardhman Textiles jumps after board approves buyback

Vardhman Textiles rose 5.17% to Rs 1,092 at 9:26 IST on BSE after the company said its board approved the proposed buyback of equity shares.

The announcement was made on Saturday, 24 September 2016.

Meanwhile, the BSE Sensex was down 118.98 points, or 0.42%, to 28,549.24.

On BSE, so far 13,000 shares were traded in the counter, compared with average daily volume of 14,360 shares in the past one quarter. The stock hit a high of Rs 1,108 and a low of Rs 1,082 so far during the day. The stock hit a record high of Rs 1,116.75 on 21 September 2016. The stock hit a 52-week low of Rs 651.50 on 20 January 2016. The stock had outperformed the market over the past 30 days till 23 September 2016, rising 4.19% compared with 2.99% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 17.67% as against Sensex's 8.60% rise.

The mid-cap company has equity capital of Rs 63.65 crore. Face value per share is Rs 10.

The board of Vardhman Textiles approved the proposal to buyback the fully paid-up equity shares of face value of Rs 10 each of the company. The buyback shall be upto an aggregate amount not exceeding Rs 720 crore at a maximum price of Rs 1,175. At maximum buyback price, the buyback translates into approximately 61.27 lakh equity shares of the company.

The board noted the intention of the promoter and promoter group of the company to participate in the proposed buyback with the intent that subsequent to the buyback, the combined shareholding of the promoters remains atleast 60% of the post buyback total paid up capital of the company.

Vardhman Textiles' consolidated net profit rose 24.16% to Rs 178.27 crore on 0.97% rise in net sales to Rs 1474.17 crore in Q1 June 2016 over Q1 June 2015.

Vardhman Group is a leading textile conglomerate in India. The group business portfolio includes yarn, greige and processed fabric, sewing thread, acrylic fibre and alloy steel.

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