Jai Corp Ltd. said on Thursday that it will repurchase 29.44 lakh shares at Rs 117 crore. The timelines for the buyback along with other requisite details will be released in due course of time.
The board has also constituted a subcommittee of the board for the purpose of the buyback and delegated all the powers in this relation, the company said through an exchange filing.
Further, the promoters have expressed their intention to tender shares under the buyback offer.
The steel manufacturer is looking to buyback a 1.65% stake at Rs 400 per equity share, which is a 1.91% premium from the current market price of Rs 392.50 apiece. Jai Corp intends to buy back the shares through the 'tender offer' route, which means that the price will remain fixed and not change.
The company has set Sept. 10 as the record date for determining the entitlement and the names of the equity shareholders who shall be eligible to participate in the buyback.
Navigant Corporate Advisors Limited has been appointed as the manager for the buyback.
Jai Corp's stock rose as much as 3.68% during the day to Rs 406.65 apiece on the NSE. The stock closed 0.08% higher at Rs 392.50 per share. This compares with a 0.40% advance in the benchmark Nifty 50. It has risen 70.95% in the last 12 months and fallen 3.60% year-to-date.
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