Welspun Enterprises, a part of USD 2.3 billion Welspun Group, today announced plans to buy back up to 25 per cent of its share capital at a price of Rs 62 per equity share.
"With a view of utilising the company's substantial cash reserves and in order to enhance shareholder value, the board has approved buy back of 25 per cent of the company's share capital," the company said in a filing to BSE.
However, the Rs 227-crore buyback would be subject to shareholders' approval.
The buyback would be at a price of Rs 62 per equity share in cash for an aggregate consideration not exceeding Rs 2.7 billion.
The promoter group, except the foreign co-promoters holding 2.17 per cent, have indicated their intention to participate in the proposed buyback, the filing said.
Promoters hold a total 37.35 per cent stake in the company. Public shareholders have 54.72 per cent holding in the firm.
Shares of the company closed 4.95 per cent down at Rs 61.45 apiece on BSE today.
Commenting on the buyback, Welspun Group Chairman B K Goenka said, "We are constantly trying to enhance shareholder value and the proposed buyback is another step in that direction.
"Welspun Enterprises, with its strong balance sheet, is operating in the sun-rise infrastructure industry and thus we expect to see a lot of initiatives in the coming days.
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