Welspun Enterprises is seeking shareholders' approval for buying back up to 25 per cent of its share capital at Rs 62 per equity share for an aggregate consideration not exceeding Rs 270 crore.
"Welspun Enterprises Ltd is seeking approval/consent of its members by postal ballot (which includes e-voting) by way of special and/or ordinary resolution," the company said in a filing to BSE.
Welspun Enterprises, part of the USD 2.3 billion Welspun Group, had last month announced that it plans to buy back up to 25 per cent of its share capital at a price of Rs 62 per equity share.
"With a view of utilising the company's substantial cash reserves and in order to enhance shareholder value, the board has approved buy back of 25 per cent of the company's share capital," the company had said in a filing to BSE.
However, the buyback would be subject to shareholders' approval, the company had said.
The buyback would be at a price of Rs 62 per equity share in cash for an aggregate consideration not exceeding Rs 2.7 billion.
The promoter group, except the foreign co-promoters holding 2.17 per cent, have indicated their intention to participate in the proposed buyback, the filing had said.
Promoters hold a total 37.35 per cent stake in the company, with public shareholding at 54.72 per cent.
"We are constantly trying to enhance shareholder value and the proposed buyback is another step in that direction.
"Welspun Enterprises, with its strong balance sheet, is operating in the sun-rise infrastructure industry and thus we expect to see a lot of initiatives in the coming days," Welspun Group Chairman B K Goenka had said.
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