Asahi Songwon Color submits letter of offer for share buyback; stock spurts 4%

Asahi Songwon Colors Limited has issued letter of offer for buyback up to 2.45 lakh fully paid equity shares of face value of Rs10 each, representing 2% of the issued, subscribed and paid up equity shares of the company from all eligible shareholders as on record date November 20, 2020 on a proportionate basis.

The company stock was bullish after the annoouncement on Thursday. At around 10.55 am, Asahi Songwon Colors Ltd was trading at Rs231.35  per piece up Rs9.10 or 4.09% on BSE.

The buyback by the company engaged in the business of manufacturing and export of color pigments, is submitted through the tender offer process at a price of Rs330 per equity share, payable in cash.

The Buyback Offer Size is Rs8.08cr excluding the transaction costs, which represents 3.86% and 3.86% of the aggregate of the company’s paid-up equity capital and free reserves as per the audited financials of the company as on March 31, 2020.