The board of directors of Exide Industries Ltd today approved the buy-back of shares up to 10 per cent of the total paid-up capital and free reserves of the company, at a price not exceeding Rs 70 per share through the open market route.
The share is currently quoted at around Rs 57 on the bourses. "The company took the decision in accordance with the recent ordinance amending the Companies Act, which permits firms to buy back shares up to 10 per cent of its capital and reserves without shareholders' approval," chairman S B Ganguly said.
The pricing of the buyback is attractive and is "virtually a bonus in the present circumstances given the prevailing market price," Ganguly added.
The market, however, did not react sharply as the share drifted at the prevailing price.
Ganguly said several minority shareholders had pointed out in the last annual general meeting that they were getting poor returns despite good performance owing to depressed share prices of the Rs 900 crore company.
"Exide is a market leader in the wet storage batteries industry and this (buy-back) move will enhance shareholders' value," Ganguly explained.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.