Adhesives and industrial chemicals manufacturer Pidilite Industries on Tuesday said its board has approved a share buyback proposal of up to Rs 500 crore.
"The Board of Directors of the company...approved buyback proposal for purchase by the company of its own fully paid equity shares of Rs 1 each not exceeding 50,00,000 equity shares at a price of Rs 1,000 per equity share for an aggregate amount not exceeding of Rs 500 crore," Pidilite Industries said in a BSE filing.
50,00,000 equity shares constitute 0.975 per cent of the total paid-up equity capital of the company.
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The buyback price of Rs 1,000 per share is nearly 8 per cent higher than Tuesday's closing of Rs 926.10 apiece.
The buyback will be subject to the approval of the shareholders by way of a special resolution through postal ballot and all other applicable statutory approvals, Pidilite added.
The public announcement setting out the process, timelines and other statutory details will be released in due course in accordance with the buyback regulations.
Pidilite's board has formed a buyback committee and has delegated powers to the committee in connection with the buyback.
At present, Pidilite's promoters hold 69.59 per cent stake in the company.
Shares of Pidilite Industries settled 2.02 per cent lower at Rs 926.10 on BSE.
