From Rs 650 to Rs 720: Siyaram Silk Mills increases the share buyback price by 11%; stock gains 5% in morning trade

Siyaram Silk Mills, a leading textile company specialising in the production of fabrics and readymade garments, has made a significant announcement regarding an update on the company’s buyback price. 

As per the details in the report, at its meeting on September 14, 2023, the Buyback Committee of the Company made the following decisions: 

Firstly, the Buyback Price has been raised from Rs 650 per Share to 720 per Share. 

Furthermore, the maximum number of equity Shares intended for repurchase by the company has been reduced from 16,61,530 fully paid-up equity shares to 14,99,992 equity shares. This buyback represents 3.20% of the total number of equity shares of the company. 

Earlier, the Board of Directors of the Company approved the proposal for the buyback of 16,61,530 fully paid-up equity shares of the Company with a face value of R 2 each at a price of Rs 650 per equity share, payable in cash, for a total consideration not exceeding Rs 1,07,99,94,500 (Rupees One Hundred Seven Crores Ninety-Nine Lakhs Ninety-Four Thousand Five Hundred only), excluding transaction costs.  

The buyback will be conducted through a Tender Offer process using the stock exchange mechanism prescribed under the Buy-back Regulations. 

The company’s shares opened the day at Rs 619.30, which is Rs 30.68 or 5.2% up from the previous day’s closing price of Rs 588.65 each on the BSE. Its 52-week high price and low price are Rs 633.80 and Rs 400, respectively.  

The current market capitalization of the company stands at Rs 2,906 crore, and while writing this article, the shares of the company are trading at Rs 620 each on the BSE. 

Additionally, the stock has gained 17% in the last month and 356% over the previous three years. 

Siyaram Silk Mills Ltd is a textile manufacturing company engaged in manufacturing fabrics and readymade garments, especially in the men’s wear section. The company exports to countries such as Abu Dhabi, Australia, Bahrain, Bangladesh, Cambodia, Canada, etc. 

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.