Welspun Enterprises proposes buy-back of 43.51 million shares

ANJAAR (KUTCH-BHUJ) | MUMBAI | AHMEDABAD | RAJKOT – Welspun Enterprises Ltd has proposed buyback of 43.51 million (4 crore 35 lakh 10 thousand 1 hundred 33) shares from investors willing to pay 62 rupees for each share of 10 rupees face value, the company aims to spend 2.7 billion (270 crore) rupees excluding transaction costs for the said buyback of shares, the company statement said.

The company board met on December 16, 2016 approved buyback of shares intending the buyback will help the company to return surplus cash to its members, benefit small shareholders, help in improving return on equity by reduction in equity base thereby leading to long term increase in shareholder’s value, it also gives option to shareholders to encash their equity in cash or increase their percentage in shareholding – post buyback without any additional investment and thus help in optimizing capital structure.

The company has sought shareholder’s nod for proposed buyback by sending notice and Postal ballots for Extra-Ordinary General Meeting (EoGM) of members scheduled on January 24, 2017 – Tuesday at the company’s registered office at Welspun City, Vershamedi village in Anjaar Taluk of Kutch District in Gujarat state.

The company has also advertised EoGM notice and Postal Ballot Notice in local newspaper Kutch-Mitra and The Financial Express.

Update over postal ballot notice was informed to exchanges in India in pre-closing hours of trading session on markets today, investors and market cheered the development, as the company shares ended in green on positive counters on the two leading Indian bourses – The Bombay Stock Exchange and The National Stock Exchange.


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