Pidilite announces buyback of Rs 500 crore

The board of directors of Pidilite Industries has approved a buyback of shares worth Rs 500 crore. The stock has face value of Re. 1 per share and the buyback price is Rs 1000 per share.

The buyback offer comprises purchase of up to 50,00,000 equity shares. The buyback offer size comprises 0.975 per cent of the total paid-up equity capital of the company. Total buyback offer will comprise 13.94 per cent of the total paid-up equity share capital and free reserves of the company. The buyback price of Rs 1,000 per share represents premium of 8.4 per cent over the closing price on the BSE. The record date for the buyback is yet to be announced, subject to approval by the members.

Pidilite Industries is involved in the manufacture of gelatine and its derivatives, resinoids, glues, prepared adhesives, including rubber-based glues and adhesives. Pidilite is the largest adhesive player in India, with its iconic brand 'Fevicol'. It enjoys market share of ~70 per cent in the organised segment in FY17. Its revenue mix consists of consumer & bazaar products (84 per cent) and speciality industrial products (16 per cent) in FY17.

Today, the stock opened at Rs 915.50 and touched an intra-day high of Rs 929.95 on the BSE, reacting on the buyback announcement.