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Cosmo First gains on Rs 108-cr share buyback

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Capital Market
Last Updated : Dec 01 2022 | 3:31 PM IST

Cosmo First advanced 3.08% to Rs 827 after the company announced a share buyback of Rs 108 crore at a price of Rs 1,070 per share through tender route from the existing shareholders on voluntary and proportionate basis.

The buyback price is fixed at Rs 1,070 per share, representing a premium of 33.37% to Wednesday's closing price of Rs 802.30 on the BSE.

The indicative maximum number of equity shares to be bought back under the buyback would be 10.09 lakh equity shares with buyback size of Rs 108 crore (excluding taxes and transaction costs) and shall be funded with surplus cash, said the company.

The company's board fixed 14 December 2022 as record date for the purpose of ascertaining the eligibility of the shareholders for the buyback.

Ashok Jaipuria, chairman & managing director of Cosmo First said, Cosmo has always believed in sharing prosperity with its shareholders. The buyback reflects strong cashflows and management's confidence in continued growth prospects in all its business verticals. The buyback will lead to further improved EPS, ROE and ROCE.

Cosmo First (formerly known as Cosmo Films) is a global leader in specialty films for packaging, lamination, labeling and synthetic paper. The company is strategically expanding beyond films into specialty chemicals & polymers as well as pet care business.

The company reported a 24.7% decline in consolidated net profit to Rs 73.23 crore on a 2.4% increase in revenue from operations to Rs 777.94 crore in Q2 FY23 over Q2 FY22.

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First Published: Dec 01 2022 | 3:21 PM IST

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