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BRITANNIA CASE STUDY ON BUY BACK OF SHARES
THE OFFER:
THE OFFER:
- To buyback fully paid-up equity shares of face value Rs.10 each.
- Offer from the open market through the stock exchange.
- Offer to buyback a maximum of 10,00,000 shares at a price not exceeding Rs.750 per equity share, payable in cash.
- Maximum Buyback amount not exceeding Rs 550 million.
- Buyback Size represents 23.37% of the aggregate of the Company’s paid up equity capital and free reserves.
- Maximum number of shares to be bought back i.e. 10,00,000 shares, represent 3.59% of the paid up equity capital of the Company.
- Maximum number of equity shares permitted to be bought back is 69,62,613 representing 25% of the total paid-up capital of the Company i.e. 278,50,450 equity shares of Rs. 10/- each.
- Maximum number of shares to be bought back i.e. 10,00,000 shares, representing 3.59% of the paid up equity capital of the Company.
- Maximum Buyback amount is 550 million which is 23.37% of the aggregate of the Company’s paid up capital & free reserves.
- The Company has substantial reserves.
- The Company intends returning surplus cash to the shareholders.
- The Buyback is expected to enhance the earnings per share of the company in future and create long term shareholder value.
- Date of opening of Buyback - Not earlier than Sept 10, 2001
- Acceptance of Shares - Within 15 days of the relevant payout dates of the Stock Exchanges.
- Extinguishment of Shares - Within 7 days of acceptance
- Last date for Buyback - July 27, 2002 or earlier.
- Stock Exchanges - BSE & NSE.
- Merchant Bankers- IL&FS Merchant Banking Services.
- Brokers - Investmart India Ltd, JM Morgan Stanley, Kotak Securities.
- The Company has appointed the brokers through whom the purchases and settlement on account of the Buyback would be made & the Company will pay the buyback consideration to the brokers on every settlement date.
- The Buyback of Shares will be made only through the order matching mechanism except “all or none” order matching system.
- The Shares of the Company will be traded in the compulsory demat mode.
- The shares shall be extinguished within 7 days from the date of acceptance of the shares