Mangalam Organics approves buyback of equity shares at Rs230 per share

The board of directors of Mangalam Organics Limited approved buy-back of up to 6.1 lakh equity shares.

Feb 05, 2018 08:02 IST India Infoline News Service

The board of directors of Mangalam Organics Limited approved, in its meeting held on February 2, 2018, buyback of up to 6.1lakh equity shares of face value of Rs10 each. The buy-back would be carried out at a price of Rs230 per share (~11% premium over current market price).

The buyback of 6.1lakh equity shares represents 6.74% of the total paid-up equity share capital of the company as on December 31, 2017.

The total buyback size amounts to Rs14.03cr is within the statutory limit of 25% of the total paid equity share capital and free reserves of the company as at December 31, 2017.

The promoters and promoter group of the company do not intend to participate in the proposed buyback. The proposed buyback shall be subject to approval of the shareholders of the company.

The promoter and the promoter group held 46.91% stake in the company as on January 25, 2018.

Mangalam Organics is a chemical manufacturer, and has synthetic resin and terpenes as primary segments which contributed 10% and 90% of the total revenue in FY17.

The stock closed at a price of Rs206.65, down by 4.33% or Rs9.35, on February 2, 2018.

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