Insecticides India board approved a Rs 50 crore buyback

India is home to the agrochemicals business Insecticides (India) Limited. The firm produces technical goods for agriculture as well as agrochemicals and pesticides. It functions via the segment dedicated to agricultural chemicals. Insecticides (India) Ltd. is committed to advancing farmer prosperity through agriculture with a highly productive and forward-thinking vision and mission. Insecticides India has become a household name in the crop protection industry since its modest beginnings in the agriculture sector in 2001. Currently, Insecticides (India) manufactures a large variety of insecticides, weedicides, and fungicides, providing over 100 formulation products and 15 technical products.

Buyback of Rs. 50 crore shares from Insecticides (India) Ltd:

This ‘tender offer’ buyback, which amounts to 1.69% of the company’s total paid-up equity capital, will be carried out proportionately. As of March 31, 2024, this buyback offer represents less than 10% of the company’s paid-up equity capital and free reserves. The company intends to repurchase up to 5,00,000 fully paid-up equity shares, which represents 1.69% of all paid-up equity shares in the company. The board also took note of the company’s promoters’ and promoter group’s plan to take part in the suggested buyback.

In addition, the board has designated Wednesday, September 11, 2024, as the record date in order to ascertain the entitlement and names of equity shareholders qualified to take part in the proposed buyback offer. The company’s board of directors has the authority to modify the maximum buyback price and the quantity of equity shares to be repurchased up to one working day before the record date, provided that the total buyback amount remains unchanged.

Results for Q1 FY25 of Insecticides (India) Ltd:

Consolidated net profit for the company increased 68.19% to Rs 49.01 crore in Q1 FY25 compared to Q1 FY24, with sales up 2.62% to Rs 656.69 crore.

Insecticides (India) Ltd. stock decline by 6%:

The current market price of Insecticides (India) Ltd.’s shares is Rs. 938. Due to weak sales, this stock has only seen a 10.5% increase in sales over the previous five years.

Conclusion: Insecticides (India) Ltd. has set the record date of September 11, 2024, for the buyback of shares via the tender route, where shareholders can tender their shares at a particular price.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.