The Venky's India share today bucked the downtrend following reports that the company board has approved a buyback proposal.
The stock closed at Rs 46.55 on the Bombay Stock Exchange, up 0.36 per cent from its previous close after hitting an intra-day high of Rs 48.50.
The stock also witnessed larger volumes of about 50,000 shares on the BSE and the National Stock Exchange combine.
The amount of buyback is not to exceed Rs 7.28 crore (10 per cent of the paid-up share capital and free reserves of the company as on March 31, 2002).
The maximum price at which the buyback will be made is Rs 65 per share, which is at a 35.4 per cent premium to the reigning market price.
Venky's (VIL), formerly Western Hatcheries (WHL), a Venkateswara Hatcheries group company, was incorporated in 1971, engaged in poultry breeding, producing eggs and hatching layer and broiler chicks.
WHL also processes, markets and sells ready-to-cook chicken, fast-food items of poultry meal and other ingredients.
The company's hatcheries are located at Pune, Maharashtra; Hyderabad, Andhra Pradesh; and Hosur, Tamil Nadu. While the feed units are at Osade (Pune), Solapur, Dehradun, Ambala and Allahabad.
The solvent extraction plant is located at Solapur and has a capacity of 60,000 tpa. The company also has a modern diagnostic and research centre at Pune.
For the fist quarter ended June 30, 2002, VIL registered a massive 112 per cent rise in net profit to Rs 3.96 crore (Rs 1.87 crore) on a 46.5 per cent increase in net sales to Rs 81.04 crore (Rs 55.31 crore).
As on June 30, 2002, the promoters' holding in VIL was 48.2 per cent, while that of the public and institutions was 40.5 per cent and 4.6 per cent, respectively.
