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Navneet Education Ltd said its offer to buy back up to ₹100 crore worth of equity shares will open on August 20 and close August 26, 2024.
The board of directors of the company, at their meeting held on August 1, had approved the buyback of up to ₹50 lakh fully paid-up equity shares (face value: ₹2) at a price of ₹200 per equity share of the company in cash.
The buyback size represents up to 2.21 per cent of the total number of issued and paid-up equity share capital of the company.
The buy-back offer, which will be on a proportionate basis through the tender offer route, is to all the shareholders of the company who hold equity shares as of the record date - August 13, 2024.
The funds deployed for the buyback will not exceed 10 per cent of the aggregate, fully paid-up equity share capital and free reserves of the company under the board of directors approval route, as provided under the Companies Act, per the company’s regulatory filing.
Accordingly, the maximum amount that can be utilised in the present Buyback is ₹ 127.82 crore on a standalone basis.
The promoter and promoter group and persons in control collectively hold 63.31 per cent of the company.
The company said the buyback is being proposed to service the equity more efficiently. Additionally, the buyback will help the company to return surplus cash to its shareholders holding equity shares.
“The buyback is generally expected to improve return-on-equity through distribution of cash and improve earnings per share by reduction in the equity base, thereby leading to long-term increase in shareholder value,” the company said.
“The buyback gives an option to the shareholders holding equity shares of the company, either to sell their... shares and receive cash or not to sell their equity shares and get a resultant increase in their percentage shareholding, post the buyback offer, without additional investment,” per the filing.
The company’s business includes content publishing segment, stationery segment (including its export business), school management (the company manages 95 schools under the ‘Orchid International’ brand) and the e-learning segment.
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