Cosmo First, a global leader in specialty films and an emerging player in specialty chemicals, announced recently another buyback of fully paid-up equity shares through a tender route from the existing shareholders on a voluntary and proportionate basis.
The buyback price is fixed at Rs 1,070 per share (face value Rs 10 per share) representing a premium of 42% over the closing price as on 28 November 2022 being the date on which the Company has intimated the stock exchanges its intention to consider the buyback proposal.
The buyback by Cosmo First will be up to 10.09 lakhs shares with a buyback size of Rs 108 crores (excluding taxes and transaction costs) and shall be funded with surplus cash.
Commenting on the buyback rationale, Ashok Jaipuria, chairman & managing director, Cosmo First said “Cosmo has always believed in sharing prosperity with its shareholders. The buyback reflects strong cashflows and management’s confidence in continued growth prospects in all its business verticals. The buyback will lead to further improved EPS, ROE and ROCE”.
The Board fixed 14 December 2022 as the record date for the purpose of ascertaining the eligibility of the shareholders for the buyback.