Star Cement Limited announces an Equity Buyback for 8,248,580 shares, representing 2% for INR 1,237.29 million.
August 13, 2021 at 04:07 am EDT
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Star Cement Limited (BSE:540575) announces a share repurchase program. Under the program, the company will repurchase up to 8,248,580 shares, representing 2% of its issued share capital for INR 1,237.29 million. The shares will be repurchased at a price of INR 150 per share. The objective of the program is to return surplus cash to the shareholders holding equity shares of the company, to improve return on equity, by reduction in the equity base, thereby leading to long term increase in shareholders’ value, to optimize the capital structure and to give an option to the shareholders, who can choose to participate and get cash in lieu of equity shares to be accepted under the program or they may choose to not participate and enjoy a resultant increase in their percentage shareholding, post the buyback program, without additional investment. The offer will be sourced out of internal accruals and/or free reserves & surplus of the company. The company has fixed August 26, 2021, as the record date for the offer. The program will be valid till October 5, 2021. As of August 6, 2021, the company had 412,428,997 shares in issue.
Star Cement Limited is an India-based cement company in North-Eastern India. The Company is engaged in the manufacture of cement, cement clinker, and generation of pawer. It operates through segments: Cement and Power. The Company has its 1.67 million tons per annum (MTPA) integrated cement plant in the idyllic town of Lumshnong in Meghalaya. Its product range for construction includes Ordinary Portland Cement (OPC 43-Grade) and (OPC 53-Grade) and Portland Pozzolana Cement (PPC), Portland Slag Cement (PSC) and a marque product in the value-added segment Anti Rust Cement (ARC). In addition, the Company has two grinding units, a two MTPA cement unit in Sonapur near Guwahati and another cement unit at Mohitnagar near Siliguri in West Bengal, with a capacity of two million tons per annum (MTPA), with an installed capacity of around 5.7 MTPA. The Company is selling its product across northeastern and eastern states of India.