HUL ropes in HSBC Sec, Capital Markets India for share buyback
Press Trust of India / New Delhi Aug 10, 2010, 14:53 IST
FMCG major Hindustan Unilever today said it has appointed merchant bankers HSBC Securities and Capital Markets India as lead managers for its Rs 630 crore share buy-back.
The company, in a filing to the Bombay Stock Exchange, said the appointment has been effective from July 28, 2010.
On June 11, the company's board had approved buying back shares worth Rs 630 crore from the market at a price of Rs 280 per share, to utilise its surplus cash.
"The company proposes to buy back shares from the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE) through open market purchases from time to time," HUL had said in a statement.
The company said the buyback price is at a premium of 20 per cent over the average closing price of the company's shares in the last three months.
"The buyback is proposed to effectively utilise the surplus cash and make the balance sheet leaner and more efficient to improve returns," it added.
The board said it has decided to seek the approval of shareholders for the proposal to buyback shares of the company up to 25 per cent of the paid capital and free reserves in terms of section 77A of the Companies Act, 1956.
According to March quarter shareholding pattern data available with the National Stock Exchange, the promoters at present hold a 52 per cent stake in HUL.
The last time the company went for buyback of shares was in July, 2007.
HUL scrips were trading at Rs 259.95 per share at the Bombay Stock Exchange, up 1.66 per cent from the previous close in the afternoon trade.
Content Guide
FMCG major Hindustan Unilever today said it has appointed merchant bankers HSBC Securities and Capital Markets India as lead managers for its Rs 630 crore share buy-back.
