| Hindustan Unilever buyback at Rs 230/shr |
| BS Reporter / Mumbai July 29, 2007 |
| Consumer goods major Hindustan Unilever (HUL) today announced that it would buyback equity shares at a price of Rs 230 per share and up to an aggregate amount of Rs 630 crore. The price is at a premium of 17% over the closing price of the HUL scrip (Rs 196.45) as on 27th July 2007. HUL's average closing share price on BSE for the last six months is Rs 196. According to a company statement, the total amount proposed for buyback is within 25% of the total paid-up capital and free reserves as per the audited balance sheet as on 31 December, 2006. HUL has Rs 2,723.48 crore as free reserves and paid-up capital. That means, the company could spend a maximum of Rs 680.86 crore on the buyback. The Securities and Exchange Board of India (Sebi) guidelines say a company can buy back shares only up to 25% of its net worth. The buy back will see HUL |
