Bosch Ltd. announced that it will buy back 8,78,160 equity shares, or 25 percent of the total paid up capital and reserves, for Rs 23,000 per share. The buyback will cost Bosch Rs 2,020 crore.
The auto component maker has also proposed a dividend of Rs 85 per share for financial year 2016, according to its filing to the exchanges. The dividend payout will cost the company Rs 267 crore.
Together, the company faces an outgo of Rs 2,287 crore, which surpasses the Rs 1,832 crore cash Bosch had on its books as on March 31, 2016.
The Bosch stock fell as much as 1.7 percent in early trade.
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