Vardhman Textiles: Board approves buy back; shares react sharply

Vardhman Textiles will be the stock to watch in September 26 trade. The board of directors of the company in its meeting held on September 24 has approved the proposal to buy back the fully paid up equity shares of the face value of Rs 10/- each from its shareholders on a proportionate basis through a tender offer.

The buyback shall be upto an aggregate amount not exceeding Rs 720 crores at a maximum price of Rs 1,175. Company on September 20 had informed BSE that a meeting of the board of directors of the Company would be held on September 24, 2016, inter alia, to consider proposal to buy-back the fully paid-up equity shares of the company. Company had also decided that the “Trading Window” of the Company shall remain closed from September 21, 2016 (09:00 a.m.) and will re-open 48 hours after the board meeting for the proposed buyback takes place.

Shares of the company in the last 3 months have surged by 15 per cent. The shares of the company on September 26 opened at Rs 1082, up by 4.21 per cent .