UPL Shares: After UPL released its share buyback plan, the company’s stock gained up to 3 percent on Thursday. However, UPL shares lost early gains due to weakness in the broader market. UPL shares are trading at Rs 698.35 with a gain of 1.30 per cent on NSE at 11.45 am.
The company will buy shares up to a maximum of Rs 1,100 crore
The agrichemical company said in an exchange filing, the Board of Directors of UPL has received from the equity shareholders of the company (other than promoters, promoters group and any person in control of the company) a fully paid-up face value of Rs 2 per share. Approved the proposal for buyback of equity shares, under which 14.56 per cent and 5.71 per cent of the total paid-up share capital and free reserves as on March 31, 2021, are to be purchased through the open market route for a maximum of Rs 1,100 crore. In this, the maximum price per share will be Rs 875.
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The company will buy 1.65 percent of the paid-up share capital
“Subject to the market price of the equity shares being equal to or less than the maximum buyback price, the maximum number of equity shares to be purchased shall be 1,25,71,428 equity shares, as on March 2, 2022 (standalone basis),” the exchange filing said. will be 1.65 per cent of the paid-up share capital.
Promoters have 28.24 percent stake in the company
The proposed buyback will require a special resolution and all statutory/regulatory approvals from the members of the company, the filing said. As of February 25, the promoters of the company hold 28.24 per cent stake in UPL.
On Friday, UPL shares were in the race for the top gainers of Nifty50 with a gain of 5 per cent. The rally was witnessed after the company announced that it would consider buyback of its equity shares.
Revenue up 24 percent in the third quarter
During the third quarter of FY22, UPL’s revenue grew 24 per cent year-on-year to Rs 11,297 crore. The company is being supported by good volume growth and good product earnings. On the other hand, the company’s net profit increased by 18 per cent to Rs 937 crore and EBITDA stood at Rs 2,666 crore, up 21 per cent year-on-year.
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