Rain Commodities proposes buybackThe board of directors of Rain Commodities Ltd has agreed buyback of its fully paid-up equity shares of Rs 10 each from the open market.
02 Sep 2008
The board of directors of Rain Commodities Ltd has agreed buyback of its fully paid-up equity shares of Rs 10 each from the open market.
The company would buy equity shares up to Rs. 26 crore at prevailing market price on the stock exchanges. However, the board had imposed a cap of Rs 307 for an equity share and 12 lakh shares in the buyback.
The decision of buy back of shares was taken based on the current satisfactory operations of the company after completion of expansion projects and absence of substantial capex plans in near future.
The move was also intended at maximizing returns to investors and to enhance overall shareholder value by returning surplus funds to shareholders in an investor-friendly manner and as an efficient mechanism for providing an exit opportunity to those shareholders who desire to do so.
On Sept 1, the company's script closed at Rs 222.15 at BSE and recorded an increase of 2.66 per cent.