The Board of Directors of Pennar Industries Ltd at its meeting held on April 27, 2009 has considered and approved a buyback of its equity shares from existing shareholders through the Stock Exchange route, at a price not exceeding Rs 40 per share. The buy back amount will not exceed Rs 12 crores which represents 9.74% of the total paid up Equity Share Capital and Free Reserves of the Company.
The Company intends to buyback its fully paid up equity shares with a face value of Rs 5/- each to a maximum extent of 65 lakh shares and a minimum number of 10 lakh shares. The buyback offer will be valid from May 14, 2009 to April 26, 2010.
Commenting on this development, Mr. Nrupender Rao, Chairman and Managing Director of Pennar Industries Ltd said, The performance of the Company in 2008-09 was the best ever for the company and on sales of Rs 730 crores the EBIDTA was Rs 76 crores. The cash earnings for the year are at Rs 57 crores. The enhanced performance has resulted in substantial cash generation and a favourable liquidity position.
Mr. Rao further added, The Buyback of shares will enhance overall shareholder value by increasing the return on equity (ROE) and earnings per share (EPS) of the company. The promoters will not participate in the offer, and pursuant to the buyback of the shares, the percentage holding of the Promoters in the Company will increase. The buyback programme will provide a good opportunity for small shareholders holding physical shares to sell their shares.
The Company intends to buyback its fully paid up equity shares with a face value of Rs 5/- each to a maximum extent of 65 lakh shares and a minimum number of 10 lakh shares. The buyback offer will be valid from May 14, 2009 to April 26, 2010.
Commenting on this development, Mr. Nrupender Rao, Chairman and Managing Director of Pennar Industries Ltd said, The performance of the Company in 2008-09 was the best ever for the company and on sales of Rs 730 crores the EBIDTA was Rs 76 crores. The cash earnings for the year are at Rs 57 crores. The enhanced performance has resulted in substantial cash generation and a favourable liquidity position.
Mr. Rao further added, The Buyback of shares will enhance overall shareholder value by increasing the return on equity (ROE) and earnings per share (EPS) of the company. The promoters will not participate in the offer, and pursuant to the buyback of the shares, the percentage holding of the Promoters in the Company will increase. The buyback programme will provide a good opportunity for small shareholders holding physical shares to sell their shares.
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