These four stocks turn ex-date for share buyback; slip up to 4%

Piramal Enterprises, KRBL, FDC and IndiaMART InterMESH turned ex-date for share buyback on Friday, falling in the range of 2 per cent to 4 per cent on the BSE in intra-day deals.

As many as four stocks, Piramal Enterprises, KRBL, FDC and IndiaMART InterMESH turned ex-date for share buyback on Friday and slipped up to 4 per cent on the BSE in intra-day trade.

These companies fixed August 25, as the record date to determine the entitlement and names of the shareholders, who were eligible to participate in the buyback offer. These four companies announced buyback via tender offer route.

Piramal Enterprises (Rs 1,016.60) and KRBL (Rs 397.05) slipped 4 per cent each, while, FDC (Rs 375) and IndiaMART (Rs 3,072.85) were down 3 per cent and 2 per cent, respectively. In comparison, the S&P BSE Sensex was down 0.33 per cent at 65,035 at 09:55 AM.

Share buy-back is a corporate action in which a company purchases back its shares from the existing shareholders usually at a price higher than market price. Post buy-back, the number of shares outstanding in the market reduces.

A tender offer is an invitation by the company to buy back its own shares from the existing shareholders of the company on a proportionate basis at a specified price. A tender offer buy-back offers investors an opportunity to take advantage of the premium pricing and exit their positions to reap quick gains. The investors need to assess the company's background and prospects to decide whether they want to tender their shares or stay invested.

Among individual stocks, Piramal Enterprises will buyback up to 14 million shares for an aggregate amount not exceeding of Rs 1,750 crore, at a price of Rs 1,250 per share. The company's promoter and promoter group have expressed their intention not to participate in the buyback.

In line with the company’s consistent focus on long term value creation for stakeholders and effective utilisation of capital, the board announced the buyback of equity shares of the company. This capital allocation strategy aims to combine investing in core business and returning excess capital to shareholders, the company’s management had said while announcing buyback on July 28.

KRBL has proposed to buyback 6.5 million equity shares representing 2.76 per cent of total equity of the company for aggregate amount not exceeding Rs 325 crore, at Rs 500 per share. The promoter & promoters group intend to participate in the proposed buyback.

KRBL is world’s largest & only integrated manufacturer and exporter of Basmati rice. The company offers its rice under a varied range of brands namely India Gate, Unity, Zabreen, Nur Jahan and many more. Its’s flagship brand India Gate brand is the World’s No. 1 Basmati Rice Brand and is known for its premium quality.

FDC, the pharmaceutical company, proposed to buyback 3.1 million shares at a price of Rs 500 per share for aggregate amount not exceeding Rs 155 crore. Earlier, the company had completed the buyback of 2.9 million equity shares having face value of Re 1 each at a price of Rs 475 per share on May 09, 2022.

IndiaMART, India's largest online B2B marketplace for business products and services, has approved buyback of up to 1.25 million shares at Rs 4,000 per share. During the last financial year 2022-23, the company had successfully completed the buyback of up to 1.6 million equity shares for an aggregate value of Rs 100 crore at a buyback price of Rs 6,250 per equity share.