Shares of Piramal Enterprises shares plummeted nearly 6% in early trade on Monday following the company’s announcement of a share buyback scheme worth ₹1,750 crore.
What Happened? The conglomerate’s board of directors on Friday approved the buyback plan, deciding to buy back up to 1.40 crore equity shares, amounting to around 5.87% of the total paid-up equity share capital.
The offer price is set at ₹1,250 per share and represented a premium of around 16% over the stock’s last closing price of ₹1,073. The record date for determining eligible shareholders for the buyback has been set as Friday, August 25, 2023.
However, the company’s promoters and promoter group have said they do not intend to participate in the buyback.
Price Action: Piramal Enterprise’s share price sank nearly 6% in early trade before improving marginally to trade 5.57% lower at 1,013.20 later in the morning on Monday.
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