Crompton Greaves buyback offer begins on July 15

Electrical equipment maker Crompton Greaves today said its Rs 265-crore buyback offer would begin on July 15.

The buyback offer, approved by the company's board last month, would close on June 27, 2014.

The company, a part of Avantha Group, plans to purchase more than 2.12 crore shares during the buyback period. Each scrip would be acquired at a maximum price of Rs 125, valuing the offer at about Rs 265.7 crore, according to a public announcement.

Religare Capital Markets Ltd is the sole broker for the buyback offer.

"The maximum buyback size is Rs 2,657 million, which represents approximately 10% of the aggregate of the company's total paid-up equity share capital plus free reserves as on March 31, 2012," the announcement said.

The buyback price of Rs 125 per share is at a premium of about 43% to its closing price on June 28, the day on which the board approved the proposal.

Crompton Greaves raked in a profit after tax of Rs 445.84 crore on total revenues of Rs 7,233.9 crore during the year ended March 2013.