Five Companies Set Record Dates For Share Buybacks In May

Five listed companies have announced share buybacks through the tender route, with record dates scheduled across May to determine shareholder eligibility for participation in the offers.

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Companies including Zydus Lifesciences, Welspun Living, CMS Info Systems, Dhanuka Agritech and CyberTech Systems & Software have proposed buybacks at premiums to prevailing market prices. Investors holding shares in their demat accounts on the respective record dates will be eligible to tender shares under the buyback process.

A share buyback is when a corporation repurchases its own stock from shareholders, often at a premium to the stock’s current trading price. A buyback can be used by a company as a capital allocation method or as a mechanism to distribute excess cash to shareholders.

Welspun Living, CMS Info Systems Record Dates On May 22

Welspun Living has fixed May 22 as the record date for its ₹252 crore share buyback. The company plans to repurchase up to 144 lakh equity shares with a face value of Re 1 each at ₹175 per share through the tender route.

According to the company’s announcement, the proposed buyback size represents 6.52% of its total paid-up equity share capital and 5.65% of free reserves. The buyback price indicates a premium of more than 23% over the stock’s previous closing level.

CMS Info Systems has also set May 22 as the record date for its ₹168 crore buyback offer. The company intends to acquire over 49 lakh shares at ₹340 apiece. The repurchase represents nearly 3% of the company’s equity base.

The buyback price offered by CMS Info Systems is over 11% higher than the stock’s earlier closing price.

Zydus Lifesciences Announces Largest-Ever Buyback

Zydus Lifesciences has approved a ₹1,100 crore share buyback, marking the company’s biggest repurchase programme so far. The board has fixed May 29 as the record date for determining shareholder eligibility.

The pharmaceutical company plans to buy back up to 95.65 lakh shares with a face value of Re 1 each at ₹1,150 per share. The total buyback size accounts for nearly 0.95% of the company’s paid-up equity capital. The buyback price is around 10.5% higher than the stock’s previous closing price.

Dhanuka Agritech, CyberTech Also Announce Offers

Dhanuka Agritech has announced a ₹70 crore buyback through the tender route at ₹1,400 per share. The company plans to repurchase up to 5 lakh shares, representing 1.11% of its total equity capital. The record date has been fixed as May 29.

CyberTech Systems & Software has also scheduled May 29 as the record date for its ₹14.45 crore buyback. The company intends to buy back 8.5 lakh shares at ₹170 per share, representing nearly 9.81% of its equity base.

The buyback price offered by CyberTech Systems carries a premium of more than 20% over the stock’s earlier closing level.