Siyaram Silk Mills announces buy back at Rs 650 per share; details inside

Siyaram Silk Mills Limited has taken a significant leap in its financial strategy as approved by the Board of Directors, initiating a buy-back plan for 16,61,530 equity shares.  

The total worth of this buyback action is Rs 107,99,94,500, with a share price of Rs 650, accounting for approximately 3.54% of the company’s overall shares. 

This action aligns seamlessly with the guidelines established by the Securities and Exchange Board of India, particularly following the “Tender Offer” protocol specified in the Buy-Back of Securities regulations. 

It’s worth highlighting that the buy-back value comprises 9.48% of the equity share capital and 9.50% of the free reserves, excluding associated costs such as taxes and fees. 

This strategic decision underscores Siyaram’s unwavering dedication to augmenting shareholder value and highlights its robust financial position, corroborated by the audited financial statements concluding on March 31, 2023. 

The company has designated September 18, 2023, as the record date for this buyback, aiming to determine the entitlement and identities of Equity Shareholders eligible to participate in the proposed buyback offer. 

Furthermore, the company has announced its results for the June quarter, revealing that the company’s revenue has declined by 11% from Rs 398 crore to Rs 354 crore. The reported operating profit stands at Rs 23 crore, with an operating profit margin of 6%, which is down from the 13% recorded in the June quarter of the previous year. The net profit for the same period is Rs 10 crore, a decrease from Rs 31 crore. 

Overall, Siyaram Silk Mills’s quarterly performance is disappointing, both in terms of its top-line and bottom-line results.  

Today, the stock opened at Rs 540.95, marking a 2% decrease from the previous day’s closing price of Rs 551.90 on the BSE. Currently, as of writing this article, the stock is trading at Rs 525.20 per share. 

Remarkably, the stock has generated a return of 265% over the past three years. Moreover, it has delivered an astonishing return of 1190% to investors over the past ten years. 

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.