Kirloskar Oil Engines Limited's Equity Buyback in the amount of INR736.25 mm has expired
January 24, 2013 at 12:00 am EST
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The Board of Directors of Kirloskar Oil Engines Ltd (BSE:533293) authorized a share repurchase program on January 25, 2012. Under the program, the company will repurchase shares, at a maximum price of INR 170 per share, for a total cost of INR 736.25 million. The shares will be repurchased by way of open market purchases through the stock exchanges. The maximum shares that will be bought are 4,330,882 shares, representing 2.97% of the fully called-up and paid-up equity shares and a minimum of 1,082,721 shares. The maximum price is at a premium of 20.52% and 20.14% over the closing prices on the BSE and NSE respectively prevailing as on January 25, 2012. The objective of the program is to enhance the shareholders' value. The repurchases will be made pursuant to Article 5A of the Articles of Association of the Company, Section 77A, 77AA, and 77B and other applicable provisions of the Companies Act, 1956. The program will commence from March 1, 2012 and will continue for a period of 12 months till January 24, 2013 or when the company completes the repurchases to the extent of INR 736.25 million, whichever is earlier, or at such earlier date as may be determined by the Board. As of February 16, 2012, the company has 145,629,750 issued and subscribed share capital.
On March 1, 2012, the company announced that the repurchase will commence from March 5, 2012. Link Intime India Private Ltd. acted as the registrar and Enam Securities Private Ltd. and Axis Capital Ltd. acted as the managers to the company.
Kirloskar Oil Engines Ltd's share repurchase program expired on January 24, 2013. Under the program, the company repurchased 1,015,424 shares, representing 0.7% for INR 156.7 million.
Kirloskar Oil Engines Limited is an India-based company, which is engaged in the business of manufacturing of engines, generating sets, pump sets and power tillers and spares thereof. The Company operates through three segments: Business to Business (B2B), Business to Customer (B2C) and Financial Services. Its B2B segment includes businesses related to fuel agnostic internal combustion engine platforms. The businesses include power generation, industrial and distribution & aftermarket and international business. Its power generation business includes engines, gensets, backup solutions, across a range of power output from two kilovolt amperes (kVA) to 3000 kVA. The industrial engine business activities are molded completely according to the motive power needs of customers who require products from over 20 horsepower (hp) to 750 hp in the industrial engine space globally. Its B2C segment consists of water management solutions and farm mechanization solutions.