Eon Electric to buy back 1.8 mn shares

Eon Electric (formerly Indo Asian Fusegear) today said it would buy back 1.8 million equity shares from the open market at a maximum price of Rs 130 per share.

"Eon Electric plans to buy back 6.45% of fully paid equity shares at a maximum price of Rs 130 a piece in cash for an aggregate amount not exceeding Rs 23.19 crore," a company statement said.

The company can buy back a maximum of 17, 84,162 equity shares, which would be 6.45% of the company’s paid up equity capital and free reserves as on March 31, 2011.

"The buyback is being proposed in keeping with the company’s desire to enhance overall shareholders value. The amount required to be invested for the buy back will come from the current surplus, cash balances and internal accruals of the company," VP Mahendru, CMD, Eon Electric said.

"The buyback will lead to reduction in outstanding number of equity shares and consequential increase in earning per share and improvement on return on net worth. Besides, it would also provide an exit opportunity to those public shareholders who desire to exit in an ninvestor friendly manner," PK Ranade, joint managing director added.

Eon Electric manufactures lighting products, wires, cables and energy meters in India.

The company shares closed 0.51% up at Rs 79.35 a piece on the Bombay Stock Exchange.