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Vardhman Textiles gains after shareholders approve buyback

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Capital Market
Last Updated : Nov 25 2016 | 12:01 PM IST

Vardhman Textiles rose 1.49% to Rs 1,085.05 at 11:41 IST on BSE after the company said its shareholders approved the proposal to buyback equity shares of the company.

The company made the announcement after market hours yesterday, 24 November 2016.

Meanwhile, the BSE Sensex was up 253.60 points, or 0.98%, to 26,113.77.

On BSE, so far 3,155 shares were traded in the counter, compared with average daily volume of 20,849 shares in the past one quarter. The stock hit a high of Rs 1,097.50 and a low of Rs 1,080.30 so far during the day. The stock hit a record high of Rs 1,159.75 on 28 October 2016. The stock hit a 52-week low of Rs 651.50 on 20 January 2016. The stock had outperformed the market over the past 30 days till 24 November 2016, falling 3.01% compared with the 7.10% decline in the Sensex. The scrip had also outperformed the market in past one quarter, rising 6.93% as against Sensex's 6.92% decline.

The mid-cap company has equity capital of Rs 63.65 crore. Face value per share is Rs 10.

On 24 September 2016, the board of Vardhman Textiles approved the proposal to buyback the fully paid-up equity shares of the company. The company later sought shareholders' approval through a postal ballot process. The shareholders voted in favor of the proposed buyback of shares. The result of postal ballot was declared on 24 November 2016.

The buyback shall be upto an aggregate amount not exceeding Rs 720 crore at a maximum price of Rs 1,175. At maximum buyback price, the buyback translates into approximately 61.27 lakh equity shares of the company.

On a consolidated basis, Vardhman Textiles' net profit surged 231.35% to Rs 454.01 crore on 3.40% rise in net sales to Rs 1496.88 crore in Q2 September 2016 over Q2 September 2015.

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Vardhman Group is a leading textile conglomerate in India. The group business portfolio includes yarn, greige and processed fabric, sewing thread, acrylic fibre and alloy steel.

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First Published: Nov 25 2016 | 11:33 AM IST

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