Britannia Industries has announced a buy-back of its equity shares at Rs 650 per share.
The buy-back size represents 9.95 per cent (25 lakh shares) of the company's paid-up equity capital.
Britannia Industries will be spending Rs 78 crore (Rs 780 million) towards the share buy-back. Britannia is an equal joint venture between the Wadia group and Groupe Danone.
The buy-back scheme is expected to open by June 17 and close by August 7. The issued and subscribed equity share capital of the company as on March 31, 2004, stood at 2.51 crore shares of Rs 10 each fully paid-up.
The promoters hold 48.48 per cent of its share capital, banks and financial institutions hold 23.82 per cent and the public holds 23.65 per cent.
Consequent to the buy-back plan and assuming that the company would be able to buy-back the proposed size, the holding of the promoters would increase to 50.91 per cent. The company had executed two buy-back schemes before -- one in fiscal year 2001-02 and another one in fiscal year 2002-03.
Britannia currently operates in the bakery segment and had hived off its dairy business into a separate joint venture with Fonterra Co-operative Group of New Zealand.
Britannia is among the largest players in the domestic biscuit market with sales of over 250,000 tonne of biscuits in fiscal 2003. Its main brands are Tiger, Good Day, Mariegold, Little Hearts and Maska Chaska.
