Gujarat Apollo Industries Ltd. announces an Equity Buyback for 4,143,750 shares, representing 25% for INR 165 million.
January 20, 2014 at 05:05 am
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Gujarat Apollo Industries Ltd. (BSE:522217) announces a share repurchase program. Under the plan, the company will repurchase up to 4,143,750 shares, representing 25% of its outstanding equity shares for INR 165 million worth of shares. The maximum price that the company will pay for each share will not be more than INR 125 per share. The minimum amount that the company will spend on the plan will not be less than INR 82.5 million. The company will make repurchases from the open market through the stock exchange(s), provided, inter alia, that such buyback shall be less than 10% of the total paid-up equity capital and free reserves of the Company as at March 31, 2013. The maximum buy-back price of INR 125 per equity share is at a premium of around 16% and 15.84% of over the closing price of the shares of the company traded on the BSE and NSE respectively on January 17, 2014. The repurchases will be made out of company's accumulated free reserves. The amount required by the company for the buyback will be met out of the cash/bank balances and/or by sale of investments made by the company and/or internal accruals. The Buyback will optimize returns to the shareholders and enhance overall shareholder value. The buyback is expected to reduce outstanding number of equity shares and consequently increase earnings per share over a period of time and effectively utilize surplus cash. The actual number of shares bought back will depend upon the price paid for the shares bought back.
On June 20, 2014, the company decided to close the program on June 30, 2014.
Gujarat Apollo Industries Limited is an India-based company, which is engaged in manufacturing of different types of mining and road construction and maintenance machineries. The Company operates through business of manufacturing and sale of construction and mining machineries, and spare parts segment. It provides state of the art and technically savvy crushing and screening solutions serving industries like quarries, mining, construction, and recycling. The Companyâs products include Jaw Crusher, HP Cone Crusher, GP Cone Crusher, Horizontal Shaft Impact Crusher, Vertical Shaft Impact Crusher, Vibrating Screen, Mobile Crushing Plant, Crushing and Screening plant, Bucket Crusher, and Coal Sampling Unit. Its vibrating screen consists of two spherical roller bearings in each housing with bore sizes up to 140 (millimeters) mm. The Company's subsidiaries include AEML Investments Limited, and Apollo FBC Crushing Equipments Ltd.