Bosch dips after board approves share buyback

The stock gained 8% in past four trading sessions as compared to 2.8% rise in Sensex till Friday.

Bosch was down 2% to Rs 22,100 on the BSE after the company announced that board approved a proposal to buy back equity shares at a price of Rs 23,000 per share through tender offer. The buyback price is 1.8% higher to the Friday’s closing price of Rs 22,603.

“The board has approved the buy-back of 878,160 equity shares representing 2.86 % of the total paid-up equity share capital of the Company at a price of Rs 23,000 each per share aggregating to Rs 2,020 crore from the shareholders of the Company on a proportionate basis through the “Tender Offer” route,” Bosch said in a BSE filing.

The board has noted the intention of Robert Bosch GmbH, promoter of the Company, to participate in the buy-back, it added.

As per the latest shareholding data on the BSE, the promoters hold 71.18% stake in Bosch, while domestic institutions own 9.34%. Foreign investments constitute 7.69% stake as of March 2016.

The stock had outperformed the market by gaining 8% in past four trading sessions after the company announced share buyback proposal June 28, as compared to 2.8% rise in the S&P BSE Sensex till Friday.