MUMBAI: Tips Industries has announced its intention to buy back its shares (Rs 10 face value each) at a price not exceeding Rs 75 - a premium of 81 per cent approximately from the company's yesterday closing price of Rs 41.55 on the BSE.
Company sources say the buyback offer, through the open market purchase route, would start once the company receives a consent from shareholders and Sebi. Tips Industries has issued a notice of a postal ballot seeking the approval of its shareholders on the buy back.
The promoter holding in the company stands at 54.99 per cent currently while shareholders' equity is at 45.01 per cent. The company's board has given the goahead to the buyback for a maximum amount of Rs 198.1 million. The methodology adopted will be open market purchase.
The company intends to purchase 3,00,000 to 3,50,000 shares. The total buy out will not exceed 25 per cent of the total floating stock in the market, say company sources.
Tips Industries had last week announced that its board had, at its meeting held on 27 June 2009, recommended a dividend at 11 per cent on 1,73,05,900 fully paid equity shares for the financial year ended 31 March 2009.
The stock opened on Monday at Rs. 43.15 that is Rs 3.9 or 9.9 per cent up as compared to Friday. The stock hit an intraday high of Rs. 41.55 and a low of Rs 40.50 and closed at Rs 41.55.
MUMBAI: Tips Industries has announced its intention to buy back its shares (Rs 10 face value each) at a price not exceeding Rs 75 - a premium of 81 per cent approximately from the company's yesterday closing price of Rs 41.55 on the BSE.
Company sources say the buyback offer, through the open market purchase route, would start once the company receives a consent from shareholders and Sebi. Tips Industries has issued a notice of a postal ballot seeking the approval of its shareholders on the buy back.
The promoter holding in the company stands at 54.99 per cent currently while shareholders' equity is at 45.01 per cent. The company's board has given the goahead to the buyback for a maximum amount of Rs 198.1 million. The methodology adopted will be open market purchase.
The company intends to purchase 3,00,000 to 3,50,000 shares. The total buy out will not exceed 25 per cent of the total floating stock in the market, say company sources.
Tips Industries had last week announced that its board had, at its meeting held on 27 June 2009, recommended a dividend at 11 per cent on 1,73,05,900 fully paid equity shares for the financial year ended 31 March 2009.
The stock opened on Monday at Rs. 43.15 that is Rs 3.9 or 9.9 per cent up as compared to Friday. The stock hit an intraday high of Rs. 41.55 and a low of Rs 40.50 and closed at Rs 41.55.
