Cheviot Company, in an exchange filing, said it has decided to buy back shares for an amount of Rs 30 crore for two lakh shares. The company has set June 16 as the record date to decide on the eligible shareholders.
The shares will be bought back from shareholders on a proportionate basis through a tender offer. The shares will be bought back at a price of Rs 1,500, 13.7% more than its closing price of Rs 1,319 on Friday on BSE.
The offer represents 8.45% of the aggregate of the fully paid- up ordinary share capital and free reserves of the company. VC Corporate Advisors is the manager to the buyback.
A total of 49 companies came with share repurchase offers in the financial year (FY) 2017, worth Rs 34, 648 crores, the highest in 19 years. The government’s dependence on the coffers of cash-rich PSUs to meet its divestment target and the new additional dividend tax regime are attributed as the reasons behind this trend.