UPL to buyback shares worth Rs1,100cr; stock adds ~1%

3 Mar 2022 , 11:06 AM

UPL Ltd., a major agro-chemicals player, announced a buyback of shares valuing Rs1,100 crore from shareholders. However, promoters shall be excluded from this transaction.

The company stated in its regulatory filing that the Board has approved the proposal of buying back fully paid-up equity shares of face value of Rs2 each from shareholders for an aggregate amount of Rs1,100 crore which is the maximum buyback size.

It sums up to 14.56% and 5.71% of its total paid-up share capital and free reserves as on 31st March, 2021 (on a standalone and consolidated basis, respectively), which is less than 15% of the aggregate of the total paid-up share capital and free reserves of the Company.

UPL will complete the buyback of shares at a maximum price of Rs875 per equity share through the open market route. The total number of shares will be 1,25,71,428 equity shares at the stated price. So, if the buyback price is decided to be lower, number of shares could increase accordingly.

The company’s stock is trading higher on NSE at Rs694.80, up by Rs5.25 or 0.76% against its previous closing price of Rs689.55. So far, it touched the intraday high and low of Rs707.90 and Rs688.95 respectively.