Emami Sinks 16% Even After Announcing Share Buyback, Second Interim Dividend

On Thursday, Emami Ltd in a stock exchange filing said that its board has approved a share buyback of 64.69 lakh shares having a face value of Re 1 for not more than Rs 300 per share. The maximum aggregate buyback amount will be Rs 194.08 crore.

Emami: Quotes, News

BSE 397.654.85 (-1.22%)

NSE 398.304.85 (-1.22%)

The company said that the maximum number of equity shares proposed to be bought back will represent 1.43 percent of the existing paid-up equity capital of the company. The maximum buyback size represents 10 percent and 9.81 percent of the aggregate of the total paid-up capital and free reserves of the Company based on the audited standalone and consolidated financial statements of the Company as at 31 March 2019, respectively, the company said.

In another filing, the company said that its board has declared payment of a second interim dividend of Rs 2 per equity share of Re 1 each for the current financial year.

"Record date for ascertaining the names of the members who will be entitled to receive this Interim Dividend is 27th March 2020," it added.

Surprisingly, shares of Emami Ltd fell nearly 16 percent to its 52-week low of Rs 154.05 after the announcement, before recovering.