Share buyback: Emami's Rs 186 crore share buyback opens today

Skincare and healthcare company Emami is set to open its share buyback programme today, 13 April. Share buyback helps improve the earnings per share (EPS) by reducing the number of outstanding shares.

Last month, the Kolkata-headquartered company's board had approved the buyback of its fully paid-up equity shares of face value of Re 1 each and announced that it would be executed through open market route via stock exchange mechanism.

The maximum buyback price would not exceed Rs 450 per equity share payable in cash for an aggregate amount of Rs 186 crore. The buyback offer will close on 19 July 2023.

A company may purchase shares from the open market for a long period of time through an open market offer. On the other hand, a tender offer buyback requires sharesholders to tender all or a portion of their shares at a certain price and within a predetermined time frame.

Emami shares opened 0.53 per cent higher at Rs 360.50 each today from its previous close. At 9.33 AM, the company's shares spotted trading at Rs 362.05 per share, up Rs 3.45 or 0.96 per cent a piece in a flat Mumbai market on Thursday.