KDDL gains after board grants approval to Rs 88 crore share buyback proposal

KDDL added 1.37% to Rs 3340 after the company's board has approved a proposal to buyback 2.37 lakh shares of the company at a price of Rs 3700 per equity share and the aggregate consideration for the same would not exceed Rs 88 crore.

The buyback price of Rs 3700 per equity share represents a premium of 12.30% to the scrips previous closing price of Rs 3294.70 on the BSE.

The company will buyback up to 2,37,837 fully paid-up equity shares, representing 1.90% of the total paid-up equity shares of the company.

The buyback size represents 22.35% and 12.06% of the aggregate of the total paid-up equity share capital and free reserves of the company based on the latest audited standalone and consolidated financial statements of the company as on 31 March 2024, respectively.

 

The buyback is proposed to be made from all of the equity shareholders / beneficial owners of the Company, including the promoters and members of the promoter group of the Company, who hold Equity Shares as of the record date.

The shares would be bought back on a proportionate basis through the "tender offer route.

KDDL is one of the leading companies of India engaged in the manufacture of watch components, high quality precision stamped components and progressive tools for a wide range of engineering applications. KDDL also owns the largest retail chain of luxury watches in India through its subsidiary, Ethos.

The companys consolidated net profit jumped 63.73% to Rs 34.81 crore despite of 16.16% rise in revenue from operations to Rs 347.61 crore in Q4 FY24 over Q4 FY23.

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