Gandhi Special Tubes Limited announces an Equity Buyback for 766,616 shares, representing 5.93% for INR 421.64 million.
June 22, 2021 at 12:58 pm
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Gandhi Special Tubes Limited (BSE:513108) announces a share repurchase program. Under the program, the company will repurchase up to 766,616 shares, representing 5.93% of its issued share capital for a total purchase price of INR 421.64 million. The shares will be repurchased at a price of INR 550 per share. The purpose of the program is to return surplus cash to its shareholders, thereby enhancing overall returns to shareholders and improve return on equity and earnings per share. The equity shares bought back by the company will be compulsorily cancelled. The funds for the implementation of the program will be sourced out of the free reserves and surplus, as permitted by the Buyback Regulations or the Act. The program is subject to shareholder approval by way of a special resolution. The program is valid till October 4, 2021. As of June 18, 2021, the company had 12,918,616 shares in issue.
Gandhi Special Tubes Limited is an India-based company, which is engaged in manufacturing of seamless and welded steel tubes, nuts, and generation of wind power. The Companyâs products include seamless steel tubes, welded tubes, coupling nuts, and fuel injection tubes. The Company is specialized in the manufacturing of welded tubes, cold formed coupling nuts and seamless tubes in various sizes and specifications. The Company manufactures automobile components and cold formed tube nuts for fuel injection tube assemblies, hydraulic and other tube assemblies. Its products are supplied to the original equipment manufacturers of the automotive sector, farm equipment manufacturers, construction equipment manufacturers, and other engineering industries. It also operates in the power sector through windmills installed in Maharashtra and Gujarat. It has a plant located in Halol (Gujarat), and windmills at Bhogat, Navadara and Kutch (Gujarat), and Sangli (Maharashtra).