43.96 lakh shares to be in the deal; October 31 is record date
KOCHI: Cochin Shipyard Ltd (CSL) has approved the buyback of 43.96 lakh (not exact number – corrected to two decimals) with a face value of Rs10 at Rs455 per share at a board meeting held today (October 16, 2018).
The total number of shares to be bought back represents 3.23 per cent of the 13.60 crore outstanding number of equity shares, as of March 31, 2018. The aggregate consideration payable for the buyback works out an approximate Rs200 crore, which is the buyback size.
The buyback size also represents 6.41 per cent of the networth of the company or aggregate of paid-up capital and free reserves, which was Rs3256 crore as of March 31, 2018.
According to the press statement issued by CSL, the buyback will be effected as on October 31, 2018 (record date) from the shareholders of the company on a proportionate basis through the tender offer route in accordance and consonance with the provisions contained in the Securities and Exchange Board of India (BuyBack of Securities) Regulations, 2018 or Buyback Regulations.
Cochin Shipyard Ltd (CSL), which was a fully government owned company divested 25 per cent of the government ownership through a public offer in August 2017 at an issue price of Rs432, and was subsequently listed on the stock exchanges on August 10, 2017 at Rs435.
The CSL share, which was closed at around Rs400 today (October 16, 2018) has gone through heavy price swings on the exchanges. While the share witnessed a 52 week low on October 8 and 9 on BSE and NSE respectively at Rs379 and Rs364, the CSL share went to the highest level of Rs579.70 on October 31, 2017.