Diversified group Piramal Enterprises Ltd (PEL) on Friday announced a share buyback scheme worth Rs 1,750 crore at Rs 1,250 apiece via tender route.

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"...we wish to inform you that the board of directors of the company at its meeting held on July 28, 2023, approved a buyback by the company of up to 1,40,00,000 equity shares of the company of face value of Rs 2/- each for an aggregate amount not exceeding Rs 1,750 crore," Piramal Enterprises said in a regulatory filing.

The offer represents a premium of 16.5 percent to the July 28 (Friday) closing price of Rs 1,072.80.

The company plans to buy back 5.87 percent of the total shares and the company's promoter and promoter group have expressed their intention not to participate in the buyback, it said.

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The board has fixed Friday, August 25, 2023, as the record date for the purpose of determining the entitlement and names of the shareholders eligible to participate in the buyback.

A share buyback is when a company repurchases its own shares from existing shareholders to reduce the number of shares available on the open market.

The second buyback scheme from Piramal Enterprises comes after 12 years. The first buyback of Rs 2,508 crore was between January 17-February 7, 2011.

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Shares of Piramal Enterprises Ltd ended at Rs 1,072.80, down by Rs 23.55, or 2.15 percent on the BSE.

(Edited by : Pradeep John)

First Published:Jul 28, 2023 3:49 PM IST