The Mumbai-based Zenith group has shelved plans to buyback equity shares of its two group companies -- Zenith Computers and Zenith Infotech.
Raj Saraf, chairman and managing director, Zenith Computers, confirmed the decision to shelve the plan but did not attribute any reason for the same.
Zenith Computers is one of the largest personal computer manufacturer in India and commands a market share of around 7 per cent.
Zenith Infotech, the software arm of the company, is involved in network integration services for banks and finance and government enterprises with a focus on middleware technology and wireless infrastructure.
Zenith Computers had announced a plan to buyback 38.50 lakh equity shares of the company from the open market at a price not exceeding Rs 25 and for an aggregate amount not exceeding Rs 9.63 crore.
The company had also received shareholders' approval for the move at the annual general meeting held in October 2001.
The company was planning to buyback around 24.87 per cent of the total paid-up share capital of the company which currently stands at Rs 15.5 crore.
Simultaneously, Zenith Infotech had also planned to buy back its shares. In October last year the company obtained shareholders' approval to buy back 29.45 lakh equity shares of Rs 10 each at a maximum price of Rs 35 per share and for an aggregate amount not exceeding Rs 10.31 crore.
If the buy-back plan of Zenith Infotech had gone through, it would have helped the promoters' raise the stake to over 90 per cent.
The shares of Zenith Computers on the Bombay Stock Exchange closed at Rs 15 today, while that of Zenith Infotech closed at Rs 18.55.
