Siemens proposes buyback of shares

Our Corporate Bureau

Mumbai, May 7: SIEMENS Ltd has proposed a buyback programme of equity shares at a price not exceeding Rs 250 per share up to an aggregate sum not exceeding Rs 80.5 crore.

The buyback would be from the open market through the stock exchange, the company said in a release here on Monday.

The promoters currently hold 51 per cent while the rest is held by the financial institutions and the public.
The board, which met on Friday, proposed the buyback in view of its favourable liquidity position and to enhance shareholder value.

The proposal would be taken up for consideration at an extraordinary general meeting of shareholders to be held in June, the release added. Commenting on the buyback programme, Siemens Ltd managing director J Schubert said: “It is our prime objective to utilise the financial resources in the best interest of the shareholders.” The scrip on the Bombay Stock Exchange (BSE) rose sharply from Rs 183.85 (on May 2 when it informed the bourses of a board meeting to consider a buyback proposal) to Rs 207.25 a day later.