Gujarat Narmada Valley Fertilizers To Buy Back Shares Worth Rs 653 Crore

Gujarat Narmada Valley Fertilizers and Chemicals Ltd. has decided to buy back 84.8 lakh shares at a price of Rs 770 apiece.

The Rs 653 crore buyback will be conducted from Dec. 1 to Dec. 7 on a proportionate basis through a tender offer, and investors who held shares on the record date of Nov. 24 will be eligible to participate in the offer, according to its exchange filing.

Shares of the company are listed on both the Bombay Stock Exchange and the National Stock Exchange, the filing said.

The funds used for the buyback of shares will be taken out of the free reserves of the company and other sources as permitted by law, though the cash borrowed from banks and other financial institutions will not be used, it said.

The buyback from the non-residential shareholders will require approval of concerned authorities, including from the RBI under the Foreign Exchange Management Act, it said.

The promoters of the company—Gujarat State Fertilizers and Chemicals Ltd. and Gujarat State Investments Ltd.—are also eligible to participate in the buyback. Gujarat State Fertilizers has tendered an equity share of 16,80,550, while Gujarat State Investments has tendered 18,14,224 equity shares, it said.

Shares of Gujarat Narmada Valley Fertilizers closed 0.26% higher at Rs 687.85 apiece, as compared with a 1.10% rise in the benchmark BSE Sensex.