In a filing to the BSE on December 20, the company said, “Pidilite Industries has informed that a meeting of the Board of Directors of the Company will be held on December 26, 2017, inter alia, to consider the proposal to buyback the fully paid-up equity shares of the Company.”
As of September 2017, promoter holding in Pidilite Industries stands at 69.59%. While foreign portfolio investors holds 10.92% stake, followed by individual shareholders (9.28%), insurance companies (4.71%), mutual funds (3.44%) and bodies corporate (1.63%), shareholding pattern data shows.
The primary objective of a share buyback programme is to arrest the fall in the value of a stock by reducing the supply of the stock, which essentially pushes up the share price through a better P/E multiple. The other objective is to improve earnings per share (since the same dividend amount is now distributed among fewer shares).
However, Pidilite Industries has outperformed the market by surging 56% thus far in the calendar year 2017, compared to 27% rise in the S&P BSE Sensex.
To read the full story, Subscribe Now at just Rs 249 a month
Already a subscriber? Log in
Subscribe To BS Premium
₹249
Renews automatically
₹1699₹1999
Opt for auto renewal and save Rs. 300 Renews automatically
₹1999
What you get on BS Premium?
-
Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
-
Pick your 5 favourite companies, get a daily email with all news updates on them.
Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
Preferential invites to Business Standard events.
Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
Need More Information - write to us at assist@bsmail.in