The board of directors of Greaves Cotton on Thursday approved a proposal to buy back shares worth ₹240 crore. It plans a buyback of up to 1.37 crore shares, being 5.6 per cent of the total paid-up equity share capital, at a tender price of ₹175 a share. The buyback is proposed to be made from the shareholders of the company as on the record date, on proportionate basis under the tender offer route.
The buyback is subject to necessary permissions, sanctions, approval of the members by means of a special resolution through a postal ballot and such other statutory approvals as may be required, the company said in a statement.
Meanwhile, Greaves also has reported a 9 per cent growth in revenues at ₹528 crore for the fourth quarter ended March 2019, against ₹486 crore in Q4FY18. EBITDA for the March quarter remained flat at ₹70 crore. However, profit after tax dipped 35 per cent at ₹37 crore (includes ₹15.5-crore provisioning on account of IL&FS) against ₹57 crore in Q4 FY18 (includes exceptional income of ₹13 crore).
For FY19, it posted an 11 per cent growth in revenue at ₹1,988 crore (₹1,792 crore) and about 29 per cent decline in net profit at ₹34 crore (₹48 crore).