Shares of Welspun Corp
declined 3% on Wednesday after the company in its filing informed that its board approved buyback of its shares at a price of Rs 140 apiece, aggregating of up to Rs 390cr, the company said in a press note released today.
The Board has arrived at this decision with a view of utilizing the Company’s surplus cash reserves and in order to enhance shareholder value. The buyback would be subject to shareholders’ approval, the company added.
"The Promoter Group (including the foreign promoters) have indicated their intention to participate in the proposed buyback up to the extent of 5% of the paid-up capital," the company said.
Besides, regarding Sanction of Scheme of Amalgamation of Welspun Pipes Limited with Welspun Corp Limited and their respective shareholders and creditors the board has fixed May 24, 2019 as the ‘Record Date’ for the purpose of determining the entitlement for issue of shares of the company to the shareholders of WPL in the proportion of their shareholding in WPL.
Meanwhile, Q4FY19 Total Income from Operations and Operating EBITDA for the continuing pipe business has registered a growth of 116% and 148%, respectively on yoy basis.
Welspun Corp Ltd's share price is currently at Rs131.95, down by Rs3.95 or 2.91%, from its previous close of Rs135.90 on the BSE.
The scrip opened at Rs129.80 and has touched a high and low of Rs132.70 and Rs127.20, respectively. So far, 5,15,301 (NSE+BSE) shares have been traded on the counter. The current market cap of the company is Rs3,604.42cr.