Pennar Industries to buy back shares for Rs 40 crore

Hyderabad: Pennar Industries Limited (PIL), an engineering products and solutions company on Friday announced buyback of equity shares.

The price per equity share will not exceed Rs 45 (maximum buyback price), for an aggregate amount that will not exceed Rs 40 crore (maximum buyback size).

The Board of Directors, at a meeting held on November 12, 2019, approved buyback of the company's fully paid-up equity shares of face value of Rs 5 each.

The buyback is from eligible equity shareholders of the company other than promoters, promoter group and persons who are in control of the company.

The company said, 'we believe that the buyback will create long term value to our shareholders. It is not likely to cause any material impact on the profitability or earnings of the company.

The share buyback will reduce the outstanding number of equity shares and consequently improve, earnings per share and key return ratios like return on net worth, return on assets etc., and will help effectively utilise available cash."

The maximum buyback size represents 6.14 per cent and 6.16 per cent of aggregate of the company's paid-up equity capital and free reserves based on the audited consolidated and standalone financial statements, respectively, of the company as at March 31, 2019, it added.