The board of directors of Cochin Shipyard on Tuesday approved buyback of equity shares worth up to ₹200 crore.
Accordingly, the company will buy back fully-paid equity shares of ₹10 each not exceeding 43.95 lakh equity shares at ₹455 a share, Cochin Shipyard said in a filing to the exchanges. The stock of CSL on Tuesday closed at ₹400.05 on the BSE, down 8 per cent from the IPO price of ₹432 a share.
The board has fixed October 31, 2018, as the record date for the purpose of determining the eligibility of shareholders with respect to the buyback of equity shares of the company.
Currently, about 1.6 lakh small shareholders hold 7.18 per cent stake in the company. For the quarter ended June 2018, the company had reported a profit of ₹106.31 crore and revenues of ₹658.73 crore. For the fiscal 2017-18, the company had reported a profit of ₹396.75 crore and revenues of ₹2,355.12 crore.
Cochin Shipyard had came out with a blockbuster IPO in August last; the ₹1,442-crore initial public offering saw robust demand from investors with the offer getting subscribed by over 72.50 times.