Vardhman Textiles shares gained nearly 7 per cent intraday on Monday after the board of the company approved the proposal to buyback the fully paid up equity shares of face value of Rs 10 from the shareholders of the company on a proportionate basis. At 1 pm, shares of the company were trading 4.69 per cent up at Rs 1087. The scrip opened the day at Rs 1082 and has touched a high and low of Rs 1,108 and Rs 1,072.80, respectively, in trade so far. Later, the scrip ended 3.15 per cent up at Rs 1071.05.
In a BSE filing the company said, “The buyback shall be upto an aggregate amount not exceeding Rs 720 crore, at the maximum price of Rs 1,175 per equity share.”
At the maximum price, the buyback translates into around 61,27,660 equity shares of the company, representing around 9.63 per cent of the total paid up equity share capital of the company. The buyback would be subject to various regulatory approvals including the approval of the shareholders.
For the quarter ended June 30, 2016, the company reported a consolidated net profit of Rs 178.27 crore, up 24.16 per cent, against Rs 143.58 crore in the same quarter last year. Net sales of the company increased by 0.97 per cent year-on-year to Rs 1474.17. Consolidated operating profit of the company increased by 11.90 per cent year-on-year to Rs 346.52 crore from Rs 309.66 crore during the same quarter.