Emami approves ₹282-crore share buyback at maximum price of ₹475
The FMCG maker will use the open-market route for the proposed repurchase, its first such buyback since 2023.
FMCG company Emami Ltd approved a share buyback of up to ₹282 crore on Thursday, with the maximum price set at ₹475 per equity share. This marks the company's first buyback since 2023 and would result in purchasing around 59.37 lakh equity shares, or 1.36% of its paid-up equity share capital. The company intends to utilize at least 75% of the allotted funds, which amounts to ₹211.50 crore.
The buyback will target at least 44,52,632 shares, with the company ensuring that 40% of the maximum buyback size, or ₹112.80 crore, is implemented within the first half of the offer. The maximum price of ₹475 per share represents a 28.6% premium over the stock's previous closing price of ₹376.10 on Wednesday. Shares will be purchased from eligible public shareholders, excluding promoters, members of the promoter group, persons in control, and their associates.
Following the buyback, the promoter and promoter group's shareholding is expected to increase to 55.60% from the current 54.84%, assuming the company purchases the maximum 59.37 lakh shares. Emami reported a 15% year-on-year decline in its consolidated net profit to ₹138.94 crore for the first quarter of the current fiscal year, primarily due to higher input costs resulting from the conflict in West Asia.
For the same period last fiscal year, the company had reported a net profit of ₹164.26 crore. The company's revenue from operations grew by around 15% to ₹1,039.21 crore during Q1FY27.
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