Diversified automobile equipment manufacturer, Motor Industries Co Ltd, a Mico Bosch group company, intends to buy back 2 lakh shares at a maximum price of Rs 4,200. The company intends to place the proposal at its annual general meeting on May 25 for shareholders' approval.
The company had got a similar proposal approved by its shareholders in its annual general meeting last year. It planned to make the buy-back offer in August last year, but could not because the price of the share was in excess of Rs 6,000.
Following this, the company secured the permission of Securities and Exchanges Board of India (Sebi) to defer the buy-back offer. The shareholders' approval for the buy-back, however, expires on June 23.
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The company has resolved to seek shareholders' approval for revival of the buy-back offer. The company will make offers to shareholders registered with the company as on March 31, 2000.
Currently, the company's total number of subscribed and fully paid-up equity shares stands at 38.05 lakh. The shares are of Rs 100 face value.
Meanwhile, in the year ended December 31, the company has registered net sales of Rs 1,509.98 crore, up 16 per cent from Rs 1,298.17 crore in the previous year. The company's export earnings have, however, fallen from Rs 192 crore to a shade under Rs 178 crore.
Profit before taxation improved to 10.3 per cent of turnover as compared to 7.8 per cent in the previous year. Its post tax profit have risen from around Rs 70 crore to Rs 105.78 crore, up more than 50 per cent.
The company has announced dividend of Rs 26 (or 26 per cent) per share for the year.