Paushak locked 5% upper circuit as board approves share buyback proposal

The stock locked in upper circuit of 5% at Rs 1,480, also its record high on BSE, after the company's board approved the share buyback proposal at price Rs 1,700 per share through tender offer

Paushak was locked in upper circuit of 5% at Rs 1,480, also its record high on BSE, after the company’s board approved the share buyback proposal at price Rs 1,700 per share through tender offer. The buyback price is 21% higher against Tuesday’s closing price of Rs 1,409 on BSE.

“The board of directors approved the proposal for buy-back of 0.12 million equity shares of the Company (representing up to 3.90% of the total paid-up equity share capital of the Company) at a price not exceeding Rs 1700 per share payable in cash for a total consideration not exceeding Rs 212 million,” Paushak said in a BSE filing.

The company engaged in agrochemicals business said the buyback of shares from all the equity shareholders of the Company including promoters and members of promoter group, as on the record date, on a proportionate basis through the "Tender Offer" route using stock exchange mechanism.

The buy-back offer size is within the limit of 25% of the total paid-up capital and free reserves of the Company, it added.

As of December 31, 2017, the promoters held 66.68% stake in Paushak. Individual shareholder have 27.59% holding, while the remaining 5.73% stake are with others including Investor Education and protection Fund Authority Ministry of Corporate Affairs (2.83%), the shareholding pattern data shows.

Till 02:37 AM; around 6,387 shares changed hands and there were pending buy orders for 5,470 shares on BSE. The stock is trading under XT category.