Godawari Power Buyback 2024: Check share repurchase price and record date
godawari power buyback 2024: check share repurchase price and record date
Godawari Power Buyback 2024: The Board of Godawari Power and Ispat approved a share buyback plan from investors for Rs 301 crore. The Rs 301 crore represents 7 per cent and 6.66 per cent of the aggregate of the total paid up equity share capital and free
reserves of the company (including Securities Premium Account).
Under the proposed plan, the company will be repurchasing 21,50,000 fully paid-up equity shares having face value of Rs 5.
Share or stock buyback is the practice where companies decide to purchase their own share from their existing shareholders either through a tender offer or through an open market. This method is considered tax-efficient, providing a beneficial way of returning cash to investors. This process reduces the number of shares available in the market, thereby increasing the intrinsic value of the remaining stock.
Shares of Godawari Power on Friday, June 14, closed at Rs 1,078.20 per share on BSE.
Godawari Power Buyback Price
Godawari Power will repurchase the shares at Rs 1,400 per share. This is a 30 per cent premium to the current market price of Rs 1,078 per share.
Generally, companies buyback shares at a price higher than the current market price.
This buyback represents up to 1.64% of the company's total paid-up equity share capital as of March 31, 2024 (excluding 45 lakh equity shares held by the Trust in Treasury), the company said in an exchange filing.
Godawari Power Buyback Record Date
The buyback, as per the exchange filing, is proposed to be undertaken from equity shareholders/beneficial owners of the company as of Friday, June 28, 2024 (record date), on a proportionate basis through the 'Tender Offer' route.
"...it is further notified that the Company has fixed Friday, June 28, 2024 as the record date for the purpose of ascertaining the eligibility of shareholders for Buyback of equity shares," the company said.
Tender Offer gives them the option to submit, or tender, all or a portion of their shares within a given time frame at a premium to the current market price.
Godawari Power Share Price History
Godawari Power is a component of S&P BSE Smallcap and boasts a market cap of Rs 14,657.59 crore, as of June 14's closing price. Its shares, as per BSE Analytics, have appreciated by 10.6 per cent in the past one week, 20 per cent in the past one month, and over 55 per cent in the past three months.
Over the past one year, the iron and steel products manufacturer delivered a return of 143 per cent. Looking back further, in two, five and 10 years, it's shares yielded returns of 315.5 per cent, 1,835.4 per cent, and 2,648.4 per cent, respectively.