Godrej Consumer Buyback At Rs 100 A Share

Godrej Consumer Products has decided to go in for a limited buyback of 3 per cent of its outstanding share capital at Rs 100 a share. The company will spend a maximum of Rs 9.3 crore on this programme.

Shareholders of the company approved the proposal through a postal ballot, which was announced at an extraordinary general meeting of the company today. The buyback price has been capped at Rs 100 per share.

The promoters hold about 68 per cent in the company, financial institutions, banks and mutual funds hold 7 per cent, private bodies hold 4 per cent while the balance 21 per cent is with the public.

 

Adi Godrej, chairman of the Godrej group said, "With this buyback, Godrej Consumer Products will add to its shareholder value."

The board feels that the company's shares are undervalued by the market. The company believes that this would provide an additional exit route to shareholders who so desire and would enhance shareholder value by reducing the cost of servicing the capital in future.

The company's shares closed at Rs 53.90 on the BSE today to register a gain of 1.7 per cent to over yesterday's close. Godrej Consumer Products is the demerged consumer products division of the former Godrej Soaps. Godrej Soaps has been renamed as Godrej Industries.

Godrej Consumer Products is a major player in the Indian FMCG market with presence in the personal, hair, household and fabric care categories. Its brands include Cinthol, Fairglow, Godrej No.1, Shikakai, Colour Soft hair colour and Ezee liquid detergent.